Growth revision shows 2009 recession shallower than thought

by Naomi Rainey

More from this author

01 Jul 2014

  • Financial Director
  • Comments

THE 2009 RECESSION may have been shallower than originally thought, according to figures from the Office for National Statistics (ONS).

Revised data due to be published in the national accounts Blue Book 2014 shows average growth between 1998 and 2009 is likely to remain at 2.2%. However, the newly-adopted methodology used in preparing this year's figures has led to changes in individual year's GDP.

The largest variation came in 2009's measurement. Last year's Blue Book stated a 5.2% contraction for the year, but this has now been amended up by 1.1% to -4.1%. By comparison, 2007's 3.4% growth will be revised down by 1% to 2.4%.

Data will not be available for the years 2010 onwards until closer to the September publication date, the ONS said. The measurement changes have been driven by the introduction of the European System of Accounts 2010, which includes items previously excluded from GDP.

While the UK's modest recovery seems to be gaining speed, Bank of England governor Mark Carney has been cautious about raising interest rates from the current historic low of 0.5% and has suggested 2.5% will become the "new normal" base rate. However, outgoing BoE deputy governor Sir Charlie Bean predicted interest rates could climb to 5% within the decade.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send
No matching document


Financial Planner

The Ministry of Defence Surgeon General’s (SG) Finance Department, Lichfield, Staffordshire, Permanent, Full Time, £ £30,008




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.