UK economy ‘out of recession’
Figures from the Office for National Statistics (ONS) show that the UK economy has exited recession – expanding by 0.1% in the fourth quarter of 2009, the BBC reports.
After contracting for six consecutive quarters, the economy has come out of its longest recession since quarterly figures were recorded for the first time in 1955.
However, despite this, insolvency trade body R3 (the Association of Business Recovery Professionals) has warned that many companies and individuals could still face insolvency during the early stages of recovery from recession.
R3’s warning is based on figures from the 1980s and 1990s recessions – when both personal (bankruptcies and IVAs (Individual Voluntary Arrangements) and corporate (compulsory liquidations and creditors’ voluntary liquidations) insolvencies peaked long after the economy had returned to growth.
Related posts:
- Many companies could face insolvency in early stages of recovery
- Insolvencies – worst yet to come: R3
- Companies to be protected from insolvency by tax relief extension
- Personal debt increased in February
- R3: record insolvencies ‘just the tip of the debt iceberg’