Two cheers as figures highlight a modest economic rebound at last

Lending Strategy Feb 2010

The UK is officially on the road to recovery, according to figures released by the Office for National Statistics.

GDP grew by 0.1% in Q4 2009 compared with the fall of 0.2% the measure showed in Q3.

Overall, the economy shrank by 4.8% last year - the most dramatic contraction since records began in 1949 - and has declined by 6% since the recession took its grip in 2008.

The 0.1% growth reported by ONS is lower than the 0.4% expansion that was predicted by many experts.

David Newnes, managing director of estate and letting agency Your Move, says: “There must be a lot of red-faced economists at the moment because these figures are well below forecast.

“But consumers should not feel downbeat due to the seemingly small numbers involved. At least it’s a move in the right direction and we did not see a seventh successive decline in the size of the economy. It seems we have finally emerged from the deepest downturn in a generation.”

He adds: “Furthermore, the figures show the retail sector was relatively strong in Q4 - it seems the great British shopper headed out to grab plenty of bargains in the sales in the lead-up to Christmas.

“And although 0.1% growth does not seem particularly impressive the typical revision in GDP is between 0.1% and 0.2% so this modest rebound could be trebled when tweaks to the figures are made in March.”