Britain crawls out of the recession

Britain has come out its recession, but with GDP growth at a mere 0.1 per cent in quarter 4 2009, it was hardly cause for a fanfare yesterday.

Indeed, the pound fell on the less than remarkable news. Forecasts from economists had been for a 0.4 per cent growth - but their increasingly wayward predictions are making them almost worthless.

Colin Ellis at Daiwa Capital Markets Europe said: "Never has an end to a recession been so underwhelming."

As the pound fell, hopes rose that the UK record-low interest rate of 0.5 per cent would remain in place for some months to come.

Mr Ellis commented: "With the economy still in intensive care, there is a strong case for more support from policy to boost growth and job creation."

Now popular forecasts are that the Bank of England will continue with its quantitative easing programme.

The Office for National Statistics will produce two revisions to the GDP growth figures which could take the figure up or down by 0.1 per cent. Business Secretary Lord Mandelson said last night that he expected the figure to be revised upwards.