Recovery has peaked, says expert

The economy has reached its peak, those seeking the best savings interest rates have been told.

Michael Baxter, editor of InvestmentandBusinessNews.co.uk, said that "this is as good as it gets".

He made the claims following the Office for National Statistics announcement that preliminary figures for Gross Domestic Product GDP increased by 0.5 per cent in the first quarter of 2011, following a contraction in the previous quarter.

Mr Baxter said that although the increase was no surprise, he had expected the figures to be slightly higher, those looking for the best savings interest rates were told.

However, he said the preliminary figures are likely to be revised upwards at some point.

"This is as good as the recovery is going to get for a while and if anything, I think we can completely rule out the possibility of another contraction or even a recession later in the year or at the beginning of next year," he added.

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2011-04-28 13:13:51 © Moneyextra.com