Partner Article

Figures to show UK recovery

Official estimates released later today are expected to show that the UK economy emerged from recession between July and September.

Forecasters expect modest 0.2% growth for the third quarter of 2009 after five quarters of economic contraction.

The return to positive growth should be led by a recovery in the UK’s dominant services sector, despite shakier conditions among manufacturers and a difficult high street climate.

But UK output has shrunk by more than 5% during the period and unemployment will continue to climb while the economy makes up the gap.

Government borrowing is also set to soar to a record £175 billion this year to pay for spending plans and higher benefit bills - which will eventually have to be tackled with spending cuts and tax rises.

The widely-accepted definition of a recession is two consecutive quarters of contraction, so any figure showing zero growth or above will mean that the recession has ended.

This was posted in Bdaily's Members' News section by Ruth Mitchell .