So, after 6 quarters of negative growth between spring 2008 and autumn 2009 is the UK economy on it’s way back?
With government spend in the UK during the first three months of this year providing a false effect of increase in consumer spending. It has actually been reported that the consumer spend dropped over the first 3 months of 2010. With the government spend now cut, what is the result going to be as job losses and higher taxes cause spend to drop even further.
These new figures placed this latest recession as the toughest since the Great Depression of the 1930s, harsher even than the slump of the early 1980s.
Despite the pick up in activity at the end of last year, output was 0.2% lower at the end of the first quarter of 2010 than it had been a year earlier.
The Guardian had this to say about 2010 finances : “The country’s budget shortfall was the third largest in the EU last year but will overtake both Greece and Ireland this year, according to the forecasts. Greece’s measures to tackle its public finances problems are projected to cut its deficit to 9.3% of GDP.”
So the answer to our Post question is a resounding…Not Likely!
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