United Kingdom started to grow economically

Despite cutting its growth forecast for this year, the Confederation of British Industry has said it believes the UK is in the clear when it comes to a triple-dip recession.

The United Kingdom enjoyed yearly growth of 0.5pc in the first quarter of this year, to be followed by a 1.4pc expansion in the next three months, according to estimates from the Organization for Economic Co-operation and Development.

United Kingdom growth

Category: Finance Viewing 6121 | Added in June 11, 2013

14 Responses

  1. avatar PrestonPark Says:
    June 11, 2013

    My prediction is that these figures will be revised downwards at some point, or just quietly forgotten - until the next prediction.

    Did they, I wonder, factor in the cold weather effect? I thought that meme making the rounds was a get-your-retaliation-in-first strategy - maybe that will be held in reserve until needed.

  2. avatar Midtown_Bookie Says:
    June 11, 2013

    Obviously the 1st QTR 2013 GDP will show another contraction. And ushering in another official recession.  Actually one large recession since 2008 with additional debt and QE temporarily rectifying the GDP situation here and there.

  3. avatar twizzle Says:
    June 11, 2013

    To tell you the truth, hillsider, I disagree.

    To return to the previous debt fueled binge is the very last thing the UK needs. All it will do is sew further massive problems into the economy and ensure that the next 'downturn', or should I say bust, be even bigger than the last.

    Nothing has changed. Manufacturing is now even a smaller element of the economy. Government spending... sorrow, borrowing, and the money printing being used to buy it will end very, very badly. For all except the top 0.1%.

  4. avatar hillsider Says:
    June 11, 2013

    Extrapolation from one month's figure in one sector is foolish even if that sector is the largest. We are clutching at straws.

  5. avatar somewhereinthesouth Says:
    June 11, 2013

    Ah yes  but recent statistical "revisions " to the data forgot to include the impact of all the snow ploughs and snow blowing machines on the economy which was broadly positive and thus the dip was only 0,01% less than previously thought.  The truth is no one knows - the figures are not that reliable.

  6. avatar chaswarner Says:
    June 11, 2013

    Not when the Gidiot's plan is to use taxpayers money to prop up unsustainable mortgages. Can't see what could possibly go wrong there, can you?

  7. avatar Jim0341 Says:
    June 11, 2013

    75% of GDP is the services sector, probably with financial services being a large proportion of that.

    No wonder the country is on a one way street to ruination.

  8. avatar Matt Wood Says:
    June 11, 2013

    I don't get it.

    What is wrong with having a service economy? 'Services' isn't just banks and brokers. 'Services' includes education, the media, healthcare, law, construction, retail, IT, telecoms, etc, etc.

    What's with this bizarre obsession with manufacturing as the only 'real' form of economic output? It seems like just another way of shaking one's fist at modernity and trying to wish the world back to a time which is not coming back.

  9. avatar denc Says:
    June 11, 2013

    Manufacturing accounts for about 15% of the UK economy - about the same as the usa and above france. German manufacturing is about 25% of the economy slightly ahead of Japan in % terms.

    Japans economyhas flourished in the last 20 years hasnt it?

    Source UNCTAD book of statistics

  10. avatar troubleshooter Says:
    June 11, 2013

    What a load of crap...

    We have not even come out of the first recession.  So how can we have a triple dip recession?

    When we have come out of the first recession, by that I mean don't go back in it 3 months down the line is the same recession as nothing had changed. But stay out and grow. An not to drop a point back into it.

    But the government have no idea how to grow, they only know how to tax and spend overseas and waste on the EU.

    when they should be spending it all here.  We can give when we got it and more, but not when we haven't.

    forcing banks to lend etc.. and not just taking some bankers word for it. But seeing the hard facts by asking business's. 

  11. avatar paulweighell Says:
    June 11, 2013

    GDP alone is not a measure of growth. We need to know how much of that is fuelled by additional debt.

  12. avatar John Mark Says:
    June 11, 2013

    I agree. In fact, I don't think that GDP is a measure of growth at all.

    It is so contaminated by government using bond and tax payers monies for whatever they give the money towards. All that gets included in this falsifying statistic called GDP.

    Public sector infrastructure projects, for example, even if halted before completion, would be included in GDP. And they've never been used!

    We're in debt up to our eyeballs, and the only cure for debt is austerity and not eyeballing this GDP thing, which is also boosted by the printing of money.

    And printing of money destroys currency.

    So, even good GDP figures are counted in a dying currency. O dear, O dear!

  13. avatar Aberrant_Apostrophe Says:
    June 11, 2013

    I take GDP figures with a large grain of salt. It can be fiddled to achieve whatever value they wish, like they did with inflation rates by taking out increasing mortgage repayments and heating bills.

    The problem is it can have unintended consequences, such as with NHS targets, where the methods used to measure deliverables are manipulated to meet the targets, but actually end up make matters worse. For example, sending people waiting to see a consultant appointments when the hospital knows the patient will be on holiday, so it counts as a 'cancellation' and the clock is restarted, or leaving patients outside in an ambulance or even a tent in one case, so the and 4-hour A&E target is met.

  14. avatar John Mark Says:
    June 11, 2013

    I think that, if we are too cynical about figures, namely that they can all be massaged and manipulated for political ends, we have put ourselves into the realm of the unrealistic.

    Figures can be helpful even if they are abused or can be so. NHS targets can be helpful, surely.

    However, I think that GDP is not in that category. 

    Even without being manipulated for political ends (let us make that assumption for the moment), it is intrinsically misleading.

    It misleads because it exists! 

    It cannot be made to be helpful, unlike the NHS targets, for example. 

    It is a deception because it is there, and has no redeemable features.

    Although, as I write, I have thought of one possible value to it. It  helps authority to keep the masses of people calm and quiet for longer, so that they do not rebel or behave rebelliously.

    If we assume that disaster of a Weimar degree is ahead of us, then it is important, for peace in the land, to keep the people calm for as long as possible.

    The GDP statistic fulfils that purpose, I suggest, and I think it is a good, sensible purpose. After all, if you're about to be executed, it is helpful for you to be kept calm before it happens.

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