UK GDP growth for fourth quarter of 2009 revised up to 0.4%
UK GDP growth for fourth quarter of 2009 revised up to 0.4%
Wednesday 31st March 2010
The UK economy has come out of recession quicker than expected according to official figures released today.Gross Domestic Product (GDP) increased by 0.4 per cent in the fourth quarter of 2009, up from the previously estimated figure of 0.3 per cent.
Despite the economy growing at a faster pace than expected, experts warned caution, saying Britain was still in for a "bumpy and gradual" recovery.
The Office for National Statistics (ONS) said GDP in the fourth quarter of 2009 is now 3.1 per cent lower than the fourth quarter of 2008. For the year 2009 as a whole, GDP contracted by 4.9 per cent, compared with growth of 0.5 per cent in the previous year.
The revised figure for GDP growth was attributed to higher output from services, construction and agriculture.
Howard Archer chief UK and European economist at IHS Global Insight said: "GDP growth in the fourth quarter of 2009 was revised up to 0.4 per cent quarter-on-quarter, indicating that the economy pulling out of recession with a little more gusto than previously thought.
"However, it does not fundamentally alter our view that recovery is likely to be bumpy and gradual. Significantly, the economy was receiving a lot of help in the fourth quarter of 2009 from monetary and fiscal stimulus and these props are starting to be removed. VAT has already been lifted back up to 17.5 per cent from 15 per cent while the car scrappage scheme is now ending."
While Duncan Higgins, senior analyst at Caxton FX added: "It is encouraging to see that the UK economy is showing some positive signs, even if the fiscal situation remains dismal.
"A 0.1 per cent rise is hardly a leap and it's certainly too early to talk about recessionary pressures evaporating. That said the improved figure does lessen the possibility that the Bank of England will extend their quantitative easing programme at their meeting next week."
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