Is UK entering a recession?

There are signs that the long period of economic growth may soon be ending.

For a long time the UK economy has been bolstered by rising house prices and strong demand from the consumer. However, a series of very disappointing results on the high street suggest that consumer confidence has fallen significantly in the wake of rising living costs and falling house prices.

A full blown recession (negative economic growth) has yet to materialise, but, the signs are for a sharp slowdown.

The data will be of little comfort to the government (facing a record level of government debt – £60billion)

it will also be of little comfort to the MPC, who have to balance the twin problems of inflation and lower growth

By on July 3rd, 2008

One thought on “Is UK entering a recession?

  1. Gordon Brown, his government, opposition politicians and Whitehall Mandarins are all to blame for why the UK economy is not fit-for-purpose in the 21st century. They have all based their economic theories over the past 30-years on the ‘service industry’ phenomena that is highly susceptible to a global turndown unlike to a lesser extent, the manufacturing/industrial sector. Unfortunately now, the banks will not support that part of our economy, which has the propensity to weather a recession. They never have done as service industries have always come first and where our financial institutions have been progressively programmed and brainwashed in this way. Indeed, the banks do not understand also that only by having a high-tech manufacturing sector can any nation survive in the long-term in the 21st century. In this respect if they need advice, one has only to look at China for a comparison. With in excess of US$1.5 trillion in foreign reserves now that are increasing at over US$30 million a day anyone with any financial intelligence should understand this quite clearly and where manufacturing is king. Unfortunately our astute financial masters do not. No recession in China I can tell you, either now or in the future. The reason, the Chinese are the greatest savers in the world at 40% of all income earned and therefore in relative terms, recession proof. Indeed the Chinese economy has been predominantly built upon home savings and not inward investment as many would like us to believe. Therefore when will the penny drop in this country I ask and when will our governments and financial institutions start to understand that only through the principal support for high-tech industries will Britain flourish economically again. For this is the only area of economics that will count in this century I can tell you.

    Therefore it will not be a change in political parties that will transform our economic fortunes, but a change in the way in which people in high places think. That is where it all goes wrong as it is certainly doing today and for many years to come.

    Dr David Hill
    World Innovation Foundation Charity
    Bern, Switzerland
    Charity No. CH-035.7.035.277-9

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