Market awaits confirmation that the recession is over
Later this morning the Office for National Statistics will release data that should confirm that the UK economy moved out of recession in the fourth quarter of 2009 and is now back on the growth path. However, even if the UK economy has moved out of recession what does this mean for businesses and consumers across the country?
The truth is that there will be a significant lag between the economy moving out of recession and a recovery in business and a recovery in personal financial situations. Those who expect a light to be switched on when the economy moves out of recession and everything to return back to normal will be sorely disappointed.
There are still many issues to be resolved within the UK including the budget deficit which is expected to hit £178 billion in the current tax year, the inevitable increase in taxes to replenish the UK government coffers and while unemployment may have dropped last month there is no certainty that number has peaked. All in all, by all means we need to enjoy the expected good news later today but those who become complacent and believe the worst is over may well have to think again.
Share this..
Related stories
How long before the UK economy is back on its feet?
While the worldwide economy seems very much to be on the road to recovery, there are still many concerns regarding the UK economy which appears to be very sluggish compared to other European and worldwide economies. So how long before the UK economy will actually be back on its feet?
Even though every government around the world has had significant problems with regards to governmen...
What will happen to the UK economy in early 2010?
Today's announcement that UK base rates will remain at 0.5% for the foreseeable future and a £25 billion increase in the quantitative easing program were pretty much as expected by analysts but nevertheless there is concern about the first quarter of 2010. The quantitative easing program is scheduled to end in February 2010 and many people are wondering exactly how the economy will react when thi...
Read MoreAre we approaching a crunch in worldwide oil supplies?
While for many people the subject of oil supply is something which will never cross their minds, more and more business leaders and economists are sounding the alarm bells about future oil supplies. There is a growing feeling that the worldwide supply of oil is in danger of falling below the level of demand. Indeed a doomsday forecast by a number of business leaders indicates that oil exploration...
Read MoreOFT to look again at UK beer industry
The Office of Fair Trading (OFT) has today confirmed it will reopen an enquiry into the tenanted pub market after legal threats from Camra (the Campaign for Real Ale). The original enquiry was launched back in the summer of 2009 after which the OFT ruled there was no evidence that supply ties were having any impact upon the competitiveness and pricing in the UK pub market. However, Camra immediate...
Read MoreUS GDP growth surprises market
US financial markets have this afternoon moved higher after the release of US GDP figures showing an annual increase of 5.7% in the final quarter of 2009. This is the largest annual increase for six years and took many analysts by surprise after concerns were voiced about the underlying strength of the US economy. The attention has now moved back onto the US economy after a week in which Pres O...
Read More