"There are growing indications that any [economic] downturn is likely to be mild and short-lived"
- Chris Williamson, the chief economist at Markit
The U.K. economy contracted 0.2 per cent in the fourth quarter of 2011 from the previous three months, said the Office for National Statistics said on Wednesday.
"While the UK clearly faces a clear risk of sliding back into another recession, which is commonly defined as two consecutive quarter of declining GDP, there are growing indications that any downturn is likely to be mild and short-lived," said Chris Williamson, the chief economist at Markit.
"While a technical recession cannot be ruled out, the signs are that the economy is turning the corner slowly," Barclays Capital economist Blerina Uruci in London wrote in an e-mailed note today. "Nevertheless, with the euro crisis grinding on, the near-term outlook remains precarious."
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