From the TUC

Quick GDP Reaction

23 Aug 2013, by Guest in Economics

An increase from 0.6% to 0.7% isn’t big news but the composition of that growth looks a little bit better than first thought. Overall this release looks like modest good news.

The net trade performance has picked up and growth seems a little less reliant on consumption than it did before this data.

On the other hand business investment remains around 25% below pre-recession levels.

Three charts (all from today’s releases) sum up how far we still have to go, both to regain the 2008 level of GDP and to successfully rebalance:

GDP1

GDP2GDP3

Despite better numbers this remains a weak recovery that has come three years later than expected.

But whatever is happening to GDP the great disconnect between growth and living standards looks set to remain.

2 Responses to Quick GDP Reaction

  1. The roofer
    Aug 23rd 2013, 11:15 am

    It’s at least positive to see adjustments to GDP being upwards rather than downwards. Whilst it is by no means guaranteed it does look as if a recovery of sorts is starting to happen. In the building area I am starting to hear of tradesman being pleasantly busy. It’s a start.

  2. JohnM
    Aug 27th 2013, 10:08 am

    Recovery starts after we have regained the ground lost since 2008.
    Until then, we are treading water.
    Recovery based on low, and getting lower, wages and salaries isn’t recovery.