Growth slowed to 0.2%

Lokolo

http://news.bbc.co.uk/1/hi/business/7576274.stm

So I know when we are in 2 or more months (2 or 3?) of negative growth, its classed as a recession. Now heres a question: how is growth worked out?

And well, welcome to my first recession in this life. panic buy blah blah blah.

sdooley

£value of transactions in the economy this year * last year's RPI

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£value of transactions in the economy last year * this year's RPI

Growth figures measure movement in the economy, not wealth. The figures you see in the newspaper are 'real growth', i.e. with inflation taken off (the economy is not bigger because everyone is buying £4 fish and chips this year rather than £3 fish and chips, but because people are buying more fish and chips). If you don't take off inflation it's called 'nominal growth'.

nicko33

Lokolo wrote: »

http://news.bbc.co.uk/1/hi/business/7576274.stm

So I know when we are in 2 or more months (2 or 3?) of negative growth, its classed as a recession.

Quarters, not months. But that's a fairly basic definition.

http://www.guardian.co.uk/business/2008/jul/04/economicgrowth.economics

Lokolo

nicko33 wrote: »

Quarters, not months. But that's a fairly basic definition.

http://www.guardian.co.uk/business/2008/jul/04/economicgrowth.economics

Yeh but what we can agree on is that we're f*cked :rotfl:

simon-dupree

We might not be if the Politicians Bankers and Whizkids stay on holiday

Like-PERMANENTLY

nicko33

Lokolo wrote: »

Yeh but what we can agree on is that we're f*cked :rotfl:

We can't agree on that.
Do you work in the media, you old doom-monger you?

Lokolo

nicko33 wrote: »

We can't agree on that.
Do you work in the media, you old doom-monger you?

Nah I just can't see us getting out of this quite easy :P:P

But nah I won't go panic buying or taking all my money out the banks and hide it under the matress

steadysaver

Lokolo wrote: »

http://news.bbc.co.uk/1/hi/business/7576274.stm

So I know when we are in 2 or more months (2 or 3?) of negative growth, its classed as a recession. Now heres a question: how is growth worked out?

And well, welcome to my first recession in this life. panic buy blah blah blah.

As I understand it growth wasn't 0.2%, It slowed to a standstill, so 0.0%.

Nah I just can't see us getting out of this quite easy :P:P

But nah I won't go panic buying or taking all my money out the banks and hide it under the matress

Its not the first time the UK economy has been heading for a recession and it won't be the last either. We will come out of it, forget all about it and I am sure the good times will roll again.

Lifes to short to worry.

Milarky

Is this 'per capita' adjusted GDP (just in case the population has been increasing) I wonder?

What should be a mystery to a visitor from 'Mars' is: If, per capita, we're as still as well off as we've even been, why can't we, cope in our lives, with a small percentage decrease in all that? (The answer is, that income and wealth are not evenly distributed - the 'pain' of recession means loss of livelihood for some people, a smaller wage increase most others, possibly some 'wealth' effects - but you can only count 'wealth' - you can't eat it.)