UK emerges from recession
Jan 26 2010
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The UK economy grew by 0.1 per cent in the last quarter of 2009 officially ending the recession.
However, the GDP figures released by the Office for National Statistics were 0.3 per cent lower than widely anticipated.
Azad Zangana, european economist at investment bank Schroders, says: ‘Today’s data indicates the start of an extremely fragile recovery, which has been highly reliant on support from fiscal and monetary policy. We estimate it will be at least three years before the UK returns to the level of output achieved in 2007.’
John Wright, chairman of the Federation of Small Businesses, says: ‘In order to strengthen the recovery it is important that we boost consumer confidence and demand and that interest rates are held steady as continued investment in the economy will be the key to ensuring a sustainable recovery.’
David Frost, director general of the British Chambers of Commerce, warned that the 1 per cent increase in employers’ national insurance contributions and additional business taxes must be avoided in order to aid recovery.
The economy had previously contracted for six consecutive quarters, the longest period since quarterly figures were first recorded in 1955.
Comment by esther porta
Tuesday 26th January 2010Everyone does well on a rising tide, but the plain truth is that, whatever shape this recession turns out to be, we will have to wait a good few years to feel that surge tide floating us all high again with both private and public sector growing. I am afraid there is no escaping the fact that it is going to be a lot of hard work and we are going to see both winners and losers for quite a while to come. As we come out of recession, companies still need to execute on a well-thought plan. The market isn't quite ready for big risks yet, and if you have had flat growth in 2009, it's better to take a measured approach. 1. Have a big idea. What's the big idea you are selling to your clients this year ? Companies have been in 'deep detailed execution' in 2009 - recovery, reduction, restriction. We need mentally to get our minds out into 'grab the future' mode. 2. Plan meticulously and execute relentlessly. Fortune may favor the bold, but there is a difference between big ideas and big risks. 3. Focus on your key strengths. Create an unfair competitive advantage by doing something you are good at, something that your company uniquely excels at. You should know, better than anyone else, what makes you money. (If you don't, come in and see us and we'll be happy to help you sort it out). 4. Be hungry, really hungry for new business. This is where your investment should be going. Get on the phone, get out into the market and start asking for the business. 5. Use partnerships. Investigate linking up with other companies who might offer complementary strengths to your own, to further increase your value proposition to potential new clients. Rose Lewis, Pembridge Partners LLP www.pembridge.net
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