Is the recession over already?
Britain’s recession may already have ended, according to a new report.
Economic output in the UK re-entered growth during April and May, a government funded thinktank has revealed.
Gross Domestic Product (GDP) grew 0.2% in April and 0.1% in May, the National Institute for Economic and Social Research (NIESR) claimed.
If this growth continues through June, and is confirmed by official quarterly statistics in July, then GDP will have increased for the first time since April 2008.
“So far as we can say, the recession is over,” said Martin Weale, NIESR director.
The report from NIESR follows a prediction earlier this this month by Defaqto economist Michael Baxter that the economic downturn is set to improve.
“With the rate of interest so low and all this quantitative easing if it didn’t put a little bit of life into the economy then you really would be worried,” Baxter said.
He added that there is “absolutely no doubt” in his mind that financial downturn is easing.
However, he also warned that “it remains to be seen” whether this optimism will continue, or whether the economy will relapse into a deeper recession.