26/01/2010
Economy 'Turns Corner' Says Northern
News today that the UK economy has come out of recession has been welcomed by a senior local banker.
The UK was the last major economy still in recession, but today's figures - while positive - showed it had only grown by a weaker-than-expected 0.1% in the last three months of 2009.
But along with other recovery signs - such as UK unemployment levels falling for the first time in 18 months - the data shows the UK economy has turned a corner in terms of exiting recession.
However, the overall recovery is still very fragile after having previously contracted for six consecutive quarters - the longest period since quarterly figures were first recorded in 1955.
Angela McGowan, Northern Bank Chief Economist (pictured) said: "Although the latest data for economic output (GDP) in the UK was widely anticipated, the overall figure was a little below the consensus forecast (which was for growth of 0.4%).
"Unfortunately the UK's recovery has lagged behind other major economies and the strength of that recovery is also expected to be weaker for a number of reasons.
"In the first instance, UK debt levels will force the Government to withdraw the fiscal stimulus before other countries withdraw their measures," she commented, noting that high levels of personal debt in the UK means that domestic demand in the UK will be relatively weak going forward.
"In addition," she said, "the financial sector, which plays a significant role in the UK economy, still remains fragile.
"Overall, UK economic output is expected to grow by 1% over the whole of 2010, which by historical standards is well below par.
"The UK data is consistent with Northern Bank forecasts which also showed that the Northern Ireland economy pulled out of recession at the end of 2009.
"However, like the UK, local economic growth remains weak," she admitted.
But, the news may be significant for policy-makers and economists and might even go some way towards rebuilding consumer confidence.
"However, while the economy has 'technically' moved out of recession, those people who have lost their jobs over the last year and a half will not be able to treat today's data as particularly significant for improvement of their job prospects," she concluded.
See: UK Emerges From Recession
(BMcC/GK)
The UK was the last major economy still in recession, but today's figures - while positive - showed it had only grown by a weaker-than-expected 0.1% in the last three months of 2009.
But along with other recovery signs - such as UK unemployment levels falling for the first time in 18 months - the data shows the UK economy has turned a corner in terms of exiting recession.
However, the overall recovery is still very fragile after having previously contracted for six consecutive quarters - the longest period since quarterly figures were first recorded in 1955.
Angela McGowan, Northern Bank Chief Economist (pictured) said: "Although the latest data for economic output (GDP) in the UK was widely anticipated, the overall figure was a little below the consensus forecast (which was for growth of 0.4%).
"Unfortunately the UK's recovery has lagged behind other major economies and the strength of that recovery is also expected to be weaker for a number of reasons.
"In the first instance, UK debt levels will force the Government to withdraw the fiscal stimulus before other countries withdraw their measures," she commented, noting that high levels of personal debt in the UK means that domestic demand in the UK will be relatively weak going forward.
"In addition," she said, "the financial sector, which plays a significant role in the UK economy, still remains fragile.
"Overall, UK economic output is expected to grow by 1% over the whole of 2010, which by historical standards is well below par.
"The UK data is consistent with Northern Bank forecasts which also showed that the Northern Ireland economy pulled out of recession at the end of 2009.
"However, like the UK, local economic growth remains weak," she admitted.
But, the news may be significant for policy-makers and economists and might even go some way towards rebuilding consumer confidence.
"However, while the economy has 'technically' moved out of recession, those people who have lost their jobs over the last year and a half will not be able to treat today's data as particularly significant for improvement of their job prospects," she concluded.
See: UK Emerges From Recession
(BMcC/GK)
Related Northern Ireland News Stories
Click here for the latest headlines.
01 February 2024
Belfast International Airport Serves 5.9m Passengers In 2023
Latest figures show that 2023 was a successful year for Belfast International Airport as it served 5.9 million passengers. Annual traffic results published by VINCI Airports show that there were almost 50,000 total aircraft movements at Belfast International in 2023, which is an increase of 23 per cent on 2022 figures.
Belfast International Airport Serves 5.9m Passengers In 2023
Latest figures show that 2023 was a successful year for Belfast International Airport as it served 5.9 million passengers. Annual traffic results published by VINCI Airports show that there were almost 50,000 total aircraft movements at Belfast International in 2023, which is an increase of 23 per cent on 2022 figures.
06 October 2022
Poots Welcomes New Bangor Social Farm
Rural Affairs Minister, Edwin Poots MLA, has welcomed the launch of a new social farm in Bangor funded by his department's Rural Social Economy Investment Scheme. Behind the Stable Door Ltd is a social farm that provides those with a disability or illness the opportunity to participate and work on a farm.
Poots Welcomes New Bangor Social Farm
Rural Affairs Minister, Edwin Poots MLA, has welcomed the launch of a new social farm in Bangor funded by his department's Rural Social Economy Investment Scheme. Behind the Stable Door Ltd is a social farm that provides those with a disability or illness the opportunity to participate and work on a farm.
05 January 2022
People Verified For Spend Local Scheme Must Still Receive Card
The Economy Minister has been urged to ensure those who were verified for a Spend Local card but didn't receive it will still get the £100 card and the opportunity to spend it.
People Verified For Spend Local Scheme Must Still Receive Card
The Economy Minister has been urged to ensure those who were verified for a Spend Local card but didn't receive it will still get the £100 card and the opportunity to spend it.
16 September 2021
Economy Minister Accused Of Letting Ideology Get In The Way Of Opportunity
The DUP economy minister needs to stop letting ideology get in the way of economic opportunity, Sinn Féin MLA Caoimhe Archibald has said.
Economy Minister Accused Of Letting Ideology Get In The Way Of Opportunity
The DUP economy minister needs to stop letting ideology get in the way of economic opportunity, Sinn Féin MLA Caoimhe Archibald has said.
12 November 2020
New Fund Launches To Help Voluntary Sector Safely Reopen
A £3.3 million fund to help the voluntary, community and social economy sectors safely deliver essential services during the Covid-19 crisis has been announced by Communities Minister Carál Ní Chuilín. From the the £3.3million Voluntary, Community and Social Economy Sector (VCSE) Covid Recovery Fund, includes an allocation of £2.
New Fund Launches To Help Voluntary Sector Safely Reopen
A £3.3 million fund to help the voluntary, community and social economy sectors safely deliver essential services during the Covid-19 crisis has been announced by Communities Minister Carál Ní Chuilín. From the the £3.3million Voluntary, Community and Social Economy Sector (VCSE) Covid Recovery Fund, includes an allocation of £2.
-
Northern Ireland WeatherToday:Mainly dry this morning with sunny spells then scattered showers breaking out this afternoon. A chilly start then feeling warmer in afternoon sunshine. Light southerly winds. Maximum temperature 11 °C.Tonight:Any showers at first soon dying out. Then dry overnight with clear periods and turning chilly with a touch of frost later tonight. Minimum temperature 1 °C.