Is the Recession Finally Over?

The British Chamber of Commerce has recently made an announcement stating that the worst of the recessions is finally over.  The business group recently made these comments alongside a report surveying over 5,000 companies in their attempts to monitor business progress and confidence levels in the past financial quarter.

The findings of this report revealed signs that progress is being made and the economy is slowly improving.  At the same time however, the BCC predicated that unemployment is expected to reach around 3.2 million people by mid 2010.

Economic news coming from the United Kingdom show that the UK has now experienced four quarters of recession.  Since the beginning of the financial crisis the UK economic output has fell over 4.9%.

Statistically this current recession has shown sharper falls in growth when compared to the two previous recessions in 1980 and also 1990.  By looking at the historic evidence from these events, economic analysts have surmised that economic growth in the UK is a slow process, and significant growth is needed to create new jobs.

Expectations are that it will take over five years for unemployment levels to reach normal so full economic recovery does not seem likely until around 2013 based on empirical evidence.

At this moment in time, there is still a great deal of uncertainty and a clear lack of confidence about the future direction of the British economy.  With some analysts predicting a sharp return to normal thanks to billions of pounds of bailouts starting to take effect, other predict that there will be a series of peaks and falls as the economy finds its own level.

Whatever happens, the evidence points to the fact that unemployment looks set to take years to recover, regardless of how quick the economy returns to normal.

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