Budget 09: recovery by the end of the year

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Budget 09: recovery by the end of the year

Simon Quicke

An economy recovering from the end of this year and growth from 2010 has been outlined by the chancellor who conceded that the economy will shrink by 3.5% in 2009.

Alistair Darling said that there would be a pick up in demand, lower prices and recovery so growth would be 1.25% next year and 3.5% annually from 2011.

He said that the communications industry played a key role in getting the economy back on track along with the science sector.

He added that the UK was an open market and therefore not immune to the global downturn but he expected it to be better positioned than some other countries in Europe, including Germany.

"We know from previous recessions people's greatest fear is the loss of their job and their home," he said that although unemployment was rising it would do its best to try and increase help for those looking for work. As a result it is throwing an additional £1.7bn at unemployment support.

There have been similar expectations of a recovery starting in the second half of the year recently voiced by some industry figures including Intel CEO Paul Ottelini.

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