UK remains in recession; Q3 GDP shrinks 0.4%

The British economy continued to be in recession, with the GDP shrinking 0.4 per cent in the third quarter of 2009, amid hopes of an early revival.

Battered by the global financial meltdown, the UK's national economy has shrunk for six straight quarters, one of the longest in over 50 years.

However, the pace of contraction has slowed down after declining by 0.6 per cent in the June quarter.

"Gross domestic product decreased by 0.4 per cent in the third quarter of 2009, compared with a decrease of 0.6 per cent in the second quarter," UK's Office for National Statistics said on Friday.      

The global economy on the other hand is slowly showing signs of recovery with many of the advanced nations, including Germany, Japan and France, climbing out of recession.

In the September quarter, UK's total production has dropped by 0.7 per cent, compared to 0.5 per cent decline in the previous quarter.

"Mining and quarrying made the largest contribution to the decline, falling by 3.5 per cent, compared with a fall of 0.6 per cent in the previous quarter," the statement added.

To fight the worsening economic situation, the British government had unleashed a slew of measures, including stimulus packages and lower interest rate regime.