Courtesy of Prime Economics:
The UK economy has – in terms of GDP – performed somewhat better in 2013 than almost all analysts expected. That includes us in PRIME. But the “growth” – which looks like being around 1.75% year on year – is nothing like as large or as entrenched for the future as many commentators want to persuade us. It comes after a year (2012) of utterly dismal economic performance, due largely to the austerity policy of the government, in which real GDP per head of population fell again, with GDP rising by just 0.25%.
But here we go again. Chancellor George Osborne tells us – 16 months ahead of the next General Election – that we must cut public spending by a further £25 billion after the election. Whatever the state of the economy. The problem, he claims, is public spending. Yet the austerity policies pursued…
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