The UK scrapes its way out of recession.

Figures released yesterday (26 January) from the Office for National Statistics (ONS) show that the UK has officially exited its recession as gross domestic product (GDP) rose by 0.1% in the fourth quarter of 2009.

According to the ONS, distribution, hotels and restaurant sectors contributed the most to the quarterly growth, and have shown consistent growth over the last six months. 

The business services and finance sectors experienced a slump, largely attributed to a significant loss within banking. Construction, transport, storage and communication on the other hand, remained largely flat, compared to previous quarterly increases.

But despite this seemingly upbeat news, most analysts agree it is still too early to say the UK is out of the woods completely.

David Kern, Chief Economist at the British Chambers of Commerce (BCC), commented: “The main aim now must be to ensure that the modest recovery consolidates and slowly gathers momentum.

“It is critical for both the government and the Monetary Policy Committee to pursue policies that make it possible for business to invest and export.”

Ian McCafferty, the CBI’s Chief Economic Advisor, agrees: “While the data marks the end of the longest recession in living memory, the slightly disappointing rise of only 0.1% demonstrates how fragile the recovery is.”

The TUC General Secretary, Brendan Barber, said that contrary to these figures showing the UK edging out of recession, they actually show “just how fragile the economy is.”

He said: “The 2.5 million people currently without work will draw little comfort from the news that the UK is now officially out of recession. Unemployment will increase again, with more people continuing to face long spells out of work.”