THE economy bounced back in January, expanding by 0.6 per cent, a Westminster-based economic think tank said yesterday.
However, the UK is still in a “depression”, with GDP 4.5 per cent below its pre-recession peak, according to the National Institute for Economic and Social Research (NIESR).
While the recession is over, the economy needs to improve its “flat” GDP to return to pre-recession levels, it said.
The economy may not fully recover until 2013, NIESR forecast.
January’s spike in output “is largely related to recovery from the impact of adverse weather at the end of last year,” NIESR said.