BDO: recession will end this year
Aug 03 2009
The economy will return to growth in the next three months, claims a report from accountancy firm BDO Stoy Hayward. But the outlook remains bleak for the eurozone whose economies can expect to remain in decline until 2010, it reveals.
Alex White, partner at BDO Stoy Hayward, says: ‘The UK seems to be reaping the benefits of a raft of well-timed and calculated moves to stimulate the economy. In stark comparison, sluggishness and indecision has held the eurozone back from a quicker recovery.’
The BDO Output Index, which measures short-run turnover expectations and order book strength, has seen the largest monthly increase in 13 years, rising from 92.3 in June to 95.1 in July. This suggests that GDP is about to stop falling, according to the report.
In contrast, the Eurozone Output Index is lagging behind at just 90.5, signalling a longer downturn and weaker prospects for a return to growth.
However, recent figures released by the Office for National Statistics revealed a 5.6 per cent year-on-year contraction in GDP, with a 0.8 per cent drop for the three months to June – significantly below market expectations of a 0.3 per cent decline.
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