GDP shows signs of hope
The latest quarterly growth figures show an encouraging 0.8%, the strongest third quarter figures in a decade.
With the incessant reminders of the state of the economy and with budget cuts coming out of our ears, who would have thought that the latest estimates suggest that the UK economy is now 2.8% bigger now than it was a year ago, and imply that the UK has been growing, on average, at an annualised rate of roughly 3.2% since the start of 2010.
The strongest sectors have been construction, hotels and restaurants, distribution, and business and financial services. Government and other public services show a smaller rate of growth.
The government would say it shows that fears of a stifled recovery are greatly exaggerated. The opposition would say it shows that spending cuts have yet to bite. Who is right?
Whether you are an optimist or a pessimist, hopefully the figures don’t lie and the coalition can make a difference, and put the ‘Great’ back into Great Britain once again.