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...Taking solace where they could, British officials hailed the official end of a recession that began in the second quarter of 2008. Though tiny, the country's fourth-quarter growth ended the nation's most severe economic slide in more than half a century - one responsible for a 6.1% decline in growth. The return to positive growth, however slight, was enough for Alistair Darling, the Chancellor of the Exchequer, to declare, "We are on a path to recovery," even if he qualified it by adding that he'll "always remain cautious." (See the best business deals...

Author: /time Magazine | Title: Britain's Out of Recession: So Why No Cheers? | 1/26/2010 | See Source »

...gain or more, thinking the economy would be fueled by the annual blast of Christmastime consumer spending as well as shoppers seeking to make purchases before an increase in the value-added tax went into effect in January. Though retail was one of the leading drivers of fourth-quarter growth, the boost in spending was offset by confounding slumps elsewhere in the economy...

Author: /time Magazine | Title: Britain's Out of Recession: So Why No Cheers? | 1/26/2010 | See Source »

...government spent on consumer-spending incentives to stimulate industrial output - like implementing cash-for-clunkers subsidies for new car buyers - the schemes didn't lead to massive growth in manufacturing. Industrial production and service-sector activities fared no better than the overall 0.1% growth figure for the fourth quarter, economists noted. "When the results were announced this morning during the meeting we were holding for the occasion, the hundreds of gathered guests all howled in derision and embarrassment at the figures they heard," says David Buik, a market analyst at the London brokerage firm BGC Partners. "It wasn't antipatriotic...

Author: /time Magazine | Title: Britain's Out of Recession: So Why No Cheers? | 1/26/2010 | See Source »

...Just as bad, most observers also aren't buying the hopeful government predictions that, however small the fourth-quarter growth was, renewed positive output marks the beginning of a gradual return to normal economic activity. That skepticism applies to the rest of Europe and other parts of the world as well. Analysts say that even though countries like France, Germany and the U.S. emerged from the recession months ago, their economic performances since then have remained very weak and vulnerable to setbacks. The reason? These countries returned to growth the same way Britain did: through massive infusions of state money...

Author: /time Magazine | Title: Britain's Out of Recession: So Why No Cheers? | 1/26/2010 | See Source »

...France, where fourth-quarter economic growth was estimated to be 0.3%, officials are now doubling their forecasts for 2010 growth from 0.75% to 1.5%, even though no new infusions of government stimulus cash are planned. Similarly, in Germany, an initial prediction of a 1.2% gain for 2010 has been revised to 1.4% - despite the country's registering a flat fourth-quarter growth figure as government stimulus funds tapered off. (Read "France and Germany Climb Out of Recession...

Author: /time Magazine | Title: Britain's Out of Recession: So Why No Cheers? | 1/26/2010 | See Source »

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