The country has finally come out of recession, official figures from the Office for National Statistics (ONS) have shown.

After six quarters – 18 months – in a row, the economy has finally stopped shrinking, making Britain the last major economy in the world to exit recession and start growing again.

According to the figures, the economy grew by 0.1% in the final quarter of 2009. Even so, the economy at the end of 2009 was still 3.2% smaller than it had been a year before – and a full 6% smaller than it was before the recession started.

Three months ago, analysts expected the ONS figures to show that the country had exited recession at the end of the third quarter of 2009, but these hopes were dashed when the ONS reported a contraction of 0.2%.

This time around, analysts were even more confident.

In the Guardian, Howard Archer, economist at IHS Global Insight, is reported as saying: “Similar hopes for an exit from recession had been held for the third quarter and were then dashed, but this time around growth expectations are even higher. Indeed, I would be astounded if the UK did not grow in the fourth quarter of 2009 and would have to seriously consider giving up economic analysis and forecasting.”

However, the end of the recession does not signal the end of the country`s financial problems. The Telegraph also quoted Mr Archer: “Serious doubt remains about the strength and sustainability of the UK`s recovery given the still very challenging economic and financial environment it faces.”

“After all,” said a spokesperson for Debt Advisers Direct, “Government debt and public debt are both extremely high, the banking sector is still fragile, the base rate can`t stay at today`s low of 0.5% – and when the base rate does rise, this is bound to put a lot of pressure on many people`s finances.”



Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

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