Tuesday, January 26, 2010

Britain Breaks out ofr Recession

As we know, the United States isn't the only country facing an economic recession- in fact- "expert" economists state that we have a global economic recession in our hands (see Forbes).

One country that got out of this sticky situation however, is Britain. The NY Times report:

Gross domestic product grew 0.1 percent in the October to December period from the previous quarter, the Office for National Statistics said in a preliminary estimate. That was less than the 0.4 percent growth that economists surveyed by Bloomberg and Reuters had been expecting.
Granted this 0.1 is not that much, it is still showing that Britain is heading in the right direction and is 'officially' out of the recession they once were in.

7 comments:

  1. Unfortunately, I don't think Britain's safe now that they've barely managed to pull out of a recession. Especially if the rest of the world is doing poorly. Their economy is probably still fragile, and even something little could send them toppling back.

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  2. I agree with M. Waytes. I'm uncertain that Britain has truly seen the worst out of this economy. The title of the article says that Britain is out of the recession...but just barely. The analysts can still make mistakes, and a GDP increase of .1 seems too statistically insignificant. The article reveals that the country's unemployment rate has been really unstable, lately. And who really knows what will happen in the future?

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  3. I agree, although it is great that they are "officially" out of the recession, it still seems like if one major event or problem happens it could cause them to fall right back into the recession, and might make it even more difficult to get out of it again. And as previously stated above, 0.1 isn't that much, so i think Britain needs to be cautious.

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  4. I agree with what everyone else has said. Just because it says that they are out a the recession on a piece of paper, I still don't think that they have seen the last of the negative effects the recession has caused. While Britian may be making progress I don't think that they can say that they are officially out of the recession.

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  5. I have to agree with the rest of you on this one. Until Britain shows stable economic growth for several quarters and is able to survive the end of government spending on recovery programs I don't believe that this proves they have pulled out of the recession yet. If Britain is able to sustain this growth for a while then I would agree that their recession has truly come to an end

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  6. Yeah after reading a few different articles in the NY Times Britain still has high unemployment and also some difficult times ahead. As far as this quarter I commend them, however there is still a lot more than can be done. Furthermore the article above this one about Japan said they had a positive growth as well, but was followed by setbacks thereafter. However encouraging this is, there is still a long way to go.

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  7. I would not say that Britain has officially broken out of the recession. I am not sure an increase by 0.1 percent of Britain's gross domestic product is enough to say that the country is going to turn around all of a sudden. Looking at the rest of the world, just about everyone is struggling, and until everyone recovers, I don't think Britain is going to see any significant increases in GDP because of this. Yes, their economic growth might continue to increase by 0.1 percent, but nothing so extravagant that it is going to turn their economy around in a year, let's say. The fact of the matter is, when the rest of the world is hurting, so will Great Britain, because we all rely on each other for things, and because so many country's are still hurting, we still won't be able to contribute to Great Britain's economy enough to help them all of a sudden get out of the recession. (A)

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