UK leaves recession after 18 months

Britain's economy has finally come out of its longest recession, after declining for six quarters in a row, official figures have shown.

Yet the growth was only 0.1% between October and December 2009, which disappointed experts who had predicted expansion of 0.4%.

Economist Howard Archer, from IHS Global Insight, said: "Economic and financial conditions are still very challenging and the UK faces a tough job to build a decent recovery."

The first estimates released by the Office for National Statistics (ONS) may be revised up or down in February's report, as it is only based on 40% data.

More than two-thirds of the economy rests on the UK's services sector, which grew by 0.1% in the three months to December, the ONS said, while overall the economy shrank by 4.8% during 2009. Since the start of the recession in 2008 it has lost 6%.

The minimal growth may prompt fears of a "double dip " recession with future tax hikes to keep the economy rising. Shortly after the ONS announcement the value of sterling dropped against the euro and the dollar, as traders speculated UK interest rates would remain at their record low levels.

Copyright © Press Association 2010