UK economy exits recession

26 January 2010

Figures from the Office for National Statistics (ONS) have shown that the UK economy exited recession in the fourth quarter of 2009, ending its `worst slump since the 1930s`, the Telegraph reports.

However, the economy expanded by just 0.1%, which was 0.3% lower than economists had expected - which `casts doubt over the strength of a possible recovery this year`.

Jonathan Loynes, an economist at Capital Economics, said: "With household incomes under pressure, credit in short supply and a major fiscal squeeze looming, the path to a full recovery is going to be a long and bumpy one."

A spokesperson for debt management company Gregory Pennington commented: "Despite the news that the UK economy has exited recession, we would advise people to stay focused on improving their personal finances.

"The country`s economy may have started growing, but it could be many months before individuals see the benefit - and although the base rate is currently at an all-time low, it will increase sooner or later, which for many people will add to the cost of servicing debts such as mortgages.

"Anyone struggling with personal debt should look at ways they can address it - seeking professional debt advice could be a good place to start."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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