UK economy
(May 2013) Fears that Britain faces years more of weak growth were raised by a leading Bank of England official when he warned that adjustment to the post-crisis world was only two-thirds to three-quarters complete. Speaking in Cardiff on Friday, Paul Fisher said there had been nothing to compare with the recent sluggish performance of the economy since modern quarterly growth data was first produced in 1955. On Thursday, Britain's return to growth was confirmed with an unchanged second estimate of GDP showing the economy grew 0.3% in the first three months of the year.
(May 2013) The UK economy will continue to grow throughout this year, with GDP (gross domestic product) growth expected to pick up in 2014. But while recent economic data have been more promising, clear challenges remain both at home and abroad, the UK’s leading business group warned.
(April 2013) The UK economy will grow less than previously forecast in 2013 and further bond purchases by the Bank of England are unlikely to help.
(March 2013) The UK’s current account deficit rose to £57.7bn - - 3.7% of GDP (gross domestic product - - in 2012, according to Office for National Statistics data released on Wednesday. The deficit has not accounted for such a large share of GDP since 1989.
(March 2013) George Osborne, UK chancellor of the exchequer, this week cut the official growth forecast in half, but insisted the UK would avoid a "triple dip" recession. In his Budget 2013 speech, he said the growth forecast in 2013 from the independent Office for Budget Responsibility would be 0.6% - - half the 1.2% that was predicted four months ago in the autumn statement.
(February 2013) UK investment as a share of GDP (gross domestic product) has historically been lower than in France and Germany. This largely accounts for the country’s lower GDP per hour worked. Moreover, the make-up of UK investment is heavily skewed towards property and buildings, rather than equipment, innovation and new technologies.
(February 2013) The UK economy is set for a recovery according to the Bank of England. However, output is still below its level five years ago, and as there has not been a 'normal' recession, neither will there be a normal recovery. The economy faces big challenges stemming from an abrupt and substantial reassessment of future economic prospects triggered by the financial crisis.
(January 2013) The UK has experienced the fastest rise in youth unemployment of any country in the G-8 (Group of Eight) since the start of the recession and now has the third worst levels in the OECD.
(January 2013) Official data issued on Wednesday showed the number of people in work in the UK rose to almost 30m between September and November, up by more than half am on a year earlier and the highest figure since records began in 1971. At the same time, unemployment fell for the 10th consecutive quarter to just under 2.5m, while the number of people claiming jobseeker’s allowance also declined. However, the squeeze on pay packets continued the 'jobs without growth' economy.
(December 2012) Simon Hoggart remarks in today's Guardian: "'Potemkin village' is political jargon for dressing something up to look much better than it is. On the wasteland of the British economy, Osborne has created the world's first Potemkin desert. A few green shoots of recovery are scattered forlornly across the wind-blasted sands...He got off on to the wrong foot by declaring at the very beginning, 'it's taking time, but the British economy is healing!" He was commenting on Wednesday's Autumn Statement in the House of Commons when George Osborne, chancellor of the exchequer, announced deep cuts in welfare and Whitehall spending after admitting Britain's malfunctioning economy had left him unable to meet the government's targets for repairing the public finances.
