News

Growth in UK economy represents “very fragile recovery”, expert says.

(23 April 2010)

The "modest growth" in the UK economy indicates a "very fragile recovery" from recession, according to a Durham University economics expert.

GDP grew by 0.2 per cent between January and March, the Office for National Statistics (ONS) announced today (Friday April 23).

Tony Cleaver, Senior Teaching Fellow in Economics at Durham Business School, said: "Modest growth in the first quarter of this year is to be welcomed but this represents a very fragile recovery from the greatest recession we have experienced in our lifetimes.

"Personal incomes must rise more and for longer than we have seen so far before we can be assured that the economic recovery will be sustained.

"The news of an overall growth in the British economy of 0.2 per cent for the first three months of the year must be contrasted with the fact that unemployment has recently risen to a 15 year high and shows no sign yet of falling.

"Growth in UK manufacturing output is certainly encouraging but even that, a 0.7 per cent rise in the first quarter, is not outstanding and exports in particular are dependent on growth in foreign markets, where the outlook, especially in Europe, is also uncertain."