Figures announced today reveal that the UK is finally out of the longest double-dip recession since the 1950s. The country’s GDP grew by 1%, the best growth rate in 5 years.
However, the figure was undoubtedly given a significant boost by extra business generated during the Diamond Jubilee and the London Olympics.
So what does today’s news really mean for businesses? Although the end of the recession is definitely a good sign, nobody can really be sure if the growth can last. This year’s events have provided a temporary boost which could be hiding a more negative long-term outlook.
Since the start of the economic downturn in 2008, hundreds of thousands of UK businesses closed and over a million people lost their jobs. News of positive growth will hopefully help to boost confidence in small businesses and those starting up, but it’s worth noting that business lending from banks is still down.