Britain out of recession but sterling hit by dollar

STERLING fell sharply against the dollar yesterday after keenly anticipated growth data showed Britain had emerged from recession in the fourth quarter but at a much slower pace than expected.

Gross domestic product expanded by 0.1% between October and December, well below analysts’ forecasts for growth of 0.4% after an 18-month recession that wiped out 6% of output.

“While it’s good news that the UK is out of recession, it is clear the economy is not out of the woods yet,” said David Tinsley, British economist at National Australia Bank.