The post 2008 recession has seen the longest decline in real GDP on record. 55 months after the peak output of 2008, the UK economy is still 4% below it’s peak. By contrast, in the same time frame during the early 1930s, the economy had recovered to be more than 2% higher than the 1930 …
Readers Question: to what extent did the EU recession cause the UK recession? In economics often several factors occur at the same time, and it is difficult to give a weighting to the importance of each factor. To some extent, people will emphasise the factors which best suits their outlook / beliefs. It is no …
In Jan 2013, UK industrial production was 2.9% lower than Jan 2012. Manufacturing on a seasonally adjusted basis fell by 3.0% in January 2013 compared with January 2012. Industrial production is over 15% lower than at the start of the recession in 2007. Industrial output (production industries = Mining + manufacturing + energy + water) …
In the past five years, the UK has experienced an unprecedented period of stagnant economic growth. The fall in real GDP is longer than even the great depression. Given the unusually depressed nature of the economy, what policies could the UK pursue to boost economic growth and recovery? Here are eight possible policies with their …
Recently, the Economist published an article (You can fool some of the people…), pointing out several economic commentators were increasingly critical of UK economic policy and the Bank of England’s monetary policy in particular. Is the Bank of England really losing grip of monetary policy? or are they doing the best job in difficult circumstances? …
One of the (many) puzzling features of the UK economy is the very disappointing export performance. Despite a 25-30% depreciation of the Pound, the UK current account deficit has remained stubbornly high and even increased at the end of 2012. Essentially, the sustained depreciation in the value of Sterling has not caused an export led …
Readers Comment from post: Should the UK join the Eurozone So now it is 2013. Britain has spent a number of years with its interest rate set at just about zero, has entered a triple recession, has lost it’s AAA credit rating and Sterling is only worth €1.15 a drop of over 30% against the …
Looking at the economic factors which will influence the value of the Pound Sterling to the Euro in the future.