The top economist suggested that policy actions would alleviate the depth and duration of the current recession.
A Bank of England policymaker has suggested that the economy could be about to turn the corner.
David Miles, the newest member of the Monetary Policy Committee (MPC), suggested in an interview with the Western Mail newspaper that things could be on the up again soon. This follows the UK officially entering recession at the end of 2008, after the economy was hit hard by the global credit crunch and banking crisis.
The economist said that the authorities' radical actions aimed at kick-starting growth - which include a temporary VAT cut from the government, the Bank's slashing of interest rates to an all-time low and its unprecedented £75 billion "quantitative easing" programme - could all now be helping the recovery.
International co-operation, which includes G20 nations agreeing a $1 trillion package aimed at tackling the economic downturn earlier this month, was also cited as important by Mr Miles. He said: "This is very much a co-ordinated slowdown across the globe with policy response being not only very substantial but also extremely recent."
Mr Miles added: "If you look at the government's announcement on fiscal policy, the bringing forward of next year's spending to this year and the cut in VAT, has only begun to have an impact within the last few months… I'm less pessimistic than many of where the economy may be going."
Britain's economy is expected to contract by over three percent this year, according to recent reports from economists. This suggests that 2009's recession will turn out to be the worst for decades.
