UK’s recovery from recession to be slow & painful

The UK economy will grow next year but the recovery will be slow and painful.

As per the influential Ernst & Young Item Club, country's Gross Domestic Product will at best grow by just 1 per cent in 2010.

The UK economy has not shown any sign of growth since the first quarter of 2008, but experts are saying that the economy will grow slightly in the third quarter.

Consensus forecasts said country's GDP could report 0.2 per cent increase for July-September quarter.

In a survey of over 7,000 small businesses in September, 75 per cent of the respondents said they were foreseeing a positive growth next year.

However, Prof. Peter Spencer, chief economist of Item Club, said, "For a sustainable recovery the UK economy needs world trade to pick up and there is still not much sign of that happening."

The study said recovery from recession will be held back by lending restrictions, uncertainty over the global economy and the planned withdrawal of government support.