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Growth could have returned to gross domestic product (GDP) and the recession may have already ended, according to a new report.

Leading think tank the National Institute for Economic and Social Research (NIESR) claims that GDP grew by 0.2 per cent in April, followed by a 0.1 per cent increase in May.

If confirmed by official quarterly statistics in July, this would mark the first time that GDP has risen since April 2008.

Commenting on the report, Martin Weale, NIESR director, says: 'So far as we can say, the recession is over.'

The report follows recent predictions that the UK will emerge from the downturn sooner than previously thought, with research firm Defaqto economist Michael Baxter claiming it is 'pretty clear' the country is emerging from the recession.

In addition, new figures from the Office for National Statistics show a 0.3 per cent increase in industrial output in April.

Chancellor Alistair Darling predicted in this year's Budget speech that the UK will suffer less than countries such as Germany, Japan and Italy in the downturn.

He also said that he expects economic growth to return to Britain by the end of year.

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