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World’s biggest economy returning to growth will boost global confidence, says David Kern

The UK is now the only major world economy in recession, as new figures show that the US economy grew by 3.5% in the last quarter – the first growth for more than a year.

The economy in the UK has limped along shrinking at a rate of 0.4% for the last quarter despite the US following the same quantative easing policy of printing money to pay the way out of recession.

The slump in the UK is the worst since the government started tracking economic data in 1955, with the figures showing the least growth for the longest period.

The UK economy is statistically worse than the one of Italy, which is expected to announce positive growth figures next month, leaving the UK as the only G7 country in recession.

David Kern, chief economist at the British Chambers of Commerce, said: “News confirming that the US economy has officially exited recession is excellent news for the global economy. 

“Although a sustainable US recovery is not yet guaranteed, the fact that the world’s biggest economy has returned to growth will boost global confidence and will help other economies, including the UK.  

“But one cannot help to notice the disappointing contrast between US growth in the third quarter and the further decline in GDP recorded by the UK. 

“It is clearly important to end the UK recession as soon as possible. The Bank of England must reinforce the quantative easing programme and act to boost bank lending. On its part the Government must remove regulatory obstacles hampering UK businesses.”

Not only is the economic news disappointing, but also the recession is still making trading difficult for many businesses.

The latest high street name to go under is Threshers, the off licence chain, that has gone in to administration with 81 redundancies. The company that owns Threshers – First Quench has 1,300 shops and employs 3,500 people. Other high street names include The Local, Wine Rack and Haddows in Scotland.

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