It's Normal That UK GDP Is Still Below Pre-Crisis Levels

March 31, 2015 10:29 AM

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We’ve just had the revisions for the latest set of GDP figures for the UK and they show that the UK GDP is rising strongly, at 0.5% (note that UK figures are reported as a quarterly number, while US figures are an annual rate from that quarter) per capita. But also that those per capita figures are still below pre-crisis levels. Thus the actual lifestyle enjoyed by us all is still a shade below what it was nearly a decade ago. In one sense this is highly unusual: it’s perhaps the first period of modern times, absent a bloody war, that this has been true. However, on another basis it’s really rather normal. For the recovery from a finance led recession is more difficult and takes longer than recovery from a normal recession.

The Conservative party received a boost from an upward revision in the UK’s GDP estimate for 2014 today. But another release from the Office for National Statistics suggests British households are not necessarily getting richer.

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