Pound falls on disappointing GDP figures

| January 26, 2010 | 0 Comments

The pound fell this morning after quarter four GDP figures were weaker than expected.

While official figures showed that the UK has finally emerged from recession in the fourth quarter, the economy only grew 0.1% - an expansion of 0.4% had been expected.

The pound fell to $1.614 against the US dollar - a fall of 0.6%, while it declined to 1.146 euros. London’s FTSE 100 also fell as the news emerged.

The UK economy, which contracted for six consecutive quarters, has been lagging behind other major economies with Japan, Germany and France all exiting recession in the second quarter and the US emerging from recession in the third quarter.

Today’s figures from the Office for National Statistics are only the first estimate and so could be revised down, or up, in the coming months.

Overall GDP fell by a record 4.8% in 2009, suggesting a sluggish recovery in 2010.

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