The latest set of economic indicators show that UK GDP is growing faster than any time since 2007. Is this a robust recovery?
Over 500 readers responded to our poll last week, and despite the statistics showing a recovery in the British economy, there still seems to be a fair bit of scepticism in the air. While 23 per cent thought that the economy was looking better all round, the largest group of respondents, 46 per cent, felt the economy was still unbalanced in favour of services, while 31 per cent thought the current growth in GDP was built on unstable foundations.
Last week’s GDP news has been bolstered by the latest Purchase Manager’s Index, which showed an increase in UK manufactuing output and forward orders.
Please let us know your views on this issue.
How can the UK recovery be anyting but robust when we are saddled with an ever-increasing massive UK debt? The politicians are not able to resolve the debt crisis effectively because they rely on short term popularity to be re-elected and keep their jobs. A compelling case is made in the following article:
http://pro.moneyweek.com/myk-eob-tpr-cut/PMYKQ105/?h=true
UK plc is spending over £300 million per day more than it takes in revenue. That is down from around £400m/day last year. Nothing short of a miracle recovery would be needed to make even modest inroads into our ever growing debt. I’m afraid that divine intervention is not available and the UK could be in serious financial dificulties if interest rates on fiscal debt rises significantly
Do remember that GDP is a ratio; it’s GDP per capita. Do you think that this government keeps a true count of the population on this country?