Clear Evidence the Recovery is Gathering Steam?????
‘Like a hungry man presented with a Big Mac, Britain has been starved of real growth for so long there is a danger we might lose perspective today. Second quarter expansion of 0.6pc is mildly satisfying, but it hardly fills the hole.
The economy is still 3.3pc smaller than its peak level before the recession – five years on. The recovery is still the slowest in over a hundred years – even worse than in the Great Depression. And, worst of all, Britain is still growing more slowly than its potential.
George Osborne has studiously avoided declaring he’s seen any “green shoots” and he’s likely to continue being careful for some time yet. Unless the second quarter’s respectable growth rate is at least matched in the final two quarters of the year, he won’t be able to call it a real recovery – one where Britain actually starts to make up the lost ground.
The UK may eventually get back to its 2007 peak, but if annual growth is below 2pc – the estimated trend rate – the country will be wasting its resources and condemning a larger proportion of the workforce to the dole than necessary.’
Gideon in his second series, ‘Cooking the Books,’ shows how to make a little growth go an awful long way. I just love his recipe for ‘Housing HotPot’. This dish is very popular with Buy-to-Let Landlords and with overseas diners who have been queueing outside that chic eatery ‘Osborne’s of St James’ for second helpings of the stuff..
‘Chris Leslie, the shadow financial secretary to the Treasury, said: “City forecasters are expecting growth of up to 0.8% this quarter and, after three years of flatlining, it’s about time we had some growth in our economy.’ http://www.guardian.co.uk/business/2013/jul/24/george-osborne-gdp-sustained-growth
More from Mike Robinson at UK Column 25 July 2013.
Financial Times not buying it either. However BBC is BUYING. Buy Buy Buy. Oh shutup BBC.
Thanks to NLAT for the Shout Out.