Friday, the UK economy may recover by the end of this year, the Bank of England chief economist Spencer Dale said.

In a speech at the Association of British Insurers Economics and Research Conference in London, Dale said, as we go through 2009, I believe it is most likely that the pace at which output is contracting will ease and that we will see some signs of recovery by around the turn of this year.

The economist based his view on the substantial stimulus already running in the economy.

That said, Dale stressed that the risks to the outlook are weighted to the downside, reflecting the likelihood that stimulus measures could be slow to take effect.

So there may still be more to do, he added.

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