Commenting on the further revision to the GDP figures for the fourth quarter 2009, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:
“These figures are stronger than earlier estimates and better than most analysts’ expectations. It is important to stress that UK growth in the fourth quarter of 2009 was stronger than that of the Eurozone. Nevertheless, it is clear that the UK recovery is still frail, vulnerable, and businesses are facing serious pressures.“From now onwards, the main aim must be to ensure that the modest recovery consolidates and gathers momentum. It is critical for both the Government and the Monetary Policy Committee to pursue policies that make it possible for business to invest and export.
"A double-dip recession is still a potential threat that must be avoided at all costs. Given the dangers still facing the economy, policy must remain expansionary. Any consideration of raising interest rates and withdrawing the QE stimulus must be postponed until there is more conclusive evidence