Great Britain out of recession faster in 4th Qtr

UK growth revised up its economy in the fourth quarter of 2009, after revelations that the services sector rose at a rate five times higher than originally estimated.
The statistics office said Friday that gross domestic product grew 0.3 percent in the last three months of last year, up from the initial estimate of a 0.1 percent expansion.
The review also exceeded the 0.2 percent rise expected by analysts polled by Reuters.

However, the figure leaves the annual GDP contracted by 3.3 percent, down somewhat higher than originally estimated by a downward revision from the previous figures.
This means that the British economy has accumulated a 6.2 percent contraction during the recession, it was from the second quarter of 2008 until the third from 2009 inclusive. The figure is higher than the 6.0 percent initially estimated, and converts the current into the deepest recession in more than 50 years.

The central bank would not be impressed by the figure upward in the fourth quarter because it had already anticipated a revision upwards in a report in February.
The Finance Ministry said after the data that the economic recovery still faced risks.

"While it is good to see an upward revision, the latest data in the European Union and elsewhere have indicated that there are risks and uncertainties about the recovery, and no room for complacency," said a Treasury spokesman.
"Remove the support that has helped us reach this point would put the recovery at risk," he said.

In the same vein, the Finance Minister Alistair Darling said that despite the positive data of the fourth quarter, the economy faces a period of uncertainty.

"We are overcoming the recession. We're getting closer to recovery, but it is absolutely essential that we maintain support for the economy," said Darling.

The upward revision was mainly due to strong December figures, particularly in the service sector, where growth in the fourth quarter was revised to 0.5 percent from 0.1 percent, the report showed.

"In the sense that growth was supported by government spending and inventories, there is reason for concern for the future. But we feel that the fiscal and monetary stimulus will help repair the economy," said Amit Kara, an analyst at UBS .