UK's exit from recession was a 'close call', according to financial services specialist

Despite the announcement this week the UK had finally emerged from recession, the small increase in GDP is still "quite worrying", according to a leading financial services specialist.

The latest GDP figures from the Office for National Statistics shows that the UK economy grew by 0.1 per cent in Q4 last year.

However, this was less than some economists predicted. For example, the National Institute of Economic and Social Research (NIESR) had predicted that the economy would grow by around 0.3 per cent.

Economist and editor of Investment and Business News Michael Baxter said while the small increase in GDP was "quite worrying", the UK could avoid a 'double-dip' recession by taking advantage of the weak pound. However, he added, that pick up has yet to materialise.

And despite the UK being the last developed economy to exit recession, Mr Baxter believed Britain is not at a particular disadvantage as other recoveries were due to restocking in the manufacturing sector.

"I am not convinced that the UK's situation is that much worse than its rivals," he said, "it's just clouded by the fact that manufacturing is less important in the UK," he said.

Posted by Rich Carruthers