(21 October 2009 – UK) Bank of England Governor, Mervyn King expects the British economy to report a return to growth by the end of 2009.The British economy officially entered a recession at the turn of the year following two quarters of negative growth in the second half of 2008.
Mr King has proceeded to warn, however, that gains would be modest and the path to sustained recovery is far from clear.
The Governor told business leaders at a dinner in Edinburgh, Scotland, that output is still well below and unemployment well above their levels of a year ago, and is likely to remain so for some time.
Improvements in financial markets should in time ease lending conditions to households and businesses, which are encouraging developments are encouraging, Mr King added.
The gross domestic product report is released on Friday and economists agree it may show modest expansion.