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Britain Gets Out Of Recession

In the statistical recovery, we can expect to see good numbers on the GDP front, and Britain’s the latest.

The U.K. economy resumed growth by less than economists forecast in the fourth quarter as service industries and manufacturing expanded just enough to pull Britain out of its longest recession on record.

Gross domestic product rose 0.1 percent from the third quarter, the Office for National Statistics said today in London. The median forecast in a Bloomberg News survey of 33 economists was for a 0.4 percent increase and the lowest prediction was for a result of 0.2 percent.

Bank of England policy makers will study the data as they assess the strength of the recovery and decide next week whether to halt bond purchases and prepare to withdraw emergency stimulus measures.

A lot of countries are now out and with the lower base last year, should show growth. The US will, too. But will it last? A double dip is scary – just like dipping your biscuit twice into a hot cup of tea, you don’t know if you’ll make it out in one piece. (If you will excuse the sorry metaphor)

Meanwhile, Greece manages to sell $11.3 billion of bonds. The yield, at 6.2% was a ‘premium’ according to Bloomberg – but 6.2% in India is really low. It’s all a matter of perspective, I imagine – one man’s misery is another man’s joy. In any case, in the age of bailouts, it was unlikely the EU would let Greece fail. Everything, apparently, is too big to fail, except you and me.

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