Pound falls after weak GDP growth figures

The pound has fallen against the dollar and the euro after disappointing figures showed the UK economy grew just 0.1% in the last three months of 2009.

Although the figures confirmed the UK's exit from an 18-month long recession, analysts had hoped for stronger growth.

The pound dropped a cent, or 0.6%, against the dollar, to $1.614. Against the euro, it slipped to 1.146 euros.

The Office for National Statistics figures also showed that GDP fell by a record 4.8% in 2009.

The UK is the last major economy to exit recession. France and Germany both began growing again between April and June last year, while the US and Japan also emerged from recession last year.

The preliminary GDP estimate could be revised down, or up, in the coming months.

Posted at 09:03PM Jan 27, 2010 by Kelly Board in The Economy  |  Comments[0]