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UK Q4 GDP contracts unexpectedly by 0.5 pct qq

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Comments

  • wolvoman
    wolvoman Posts: 1,183 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    StevieJ wrote: »
    You mean like Ireland? or even the US?
    Ireland isn't really comparable, it is/was a tiger economy not an established one.

    The US - that's a fair point. But they created a large deficit more by tax cutting than spending increases.

    It's a simple fact - the UK has a large structural deficit that needs to be removed. Gordon Brown and Tony Blair created it. Tony Blair now admits they spent too much. Ed Milliband has said would spend even more. More money we DON'T have.
  • Two weeks of snow isn't going to have that much effect on a whole quarters growth...Blaming the weather simply isn't good enough.
    A journey of a thousand miles begins with a single step

    Savings For Kids 1st Jan 2019 £16,112
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 25 January 2011 at 1:56PM
    Two weeks of snow isn't going to have that much effect on a whole quarters growth...Blaming the weather simply isn't good enough.
    It accounted for being down 0.5%. It would have been 0.0% otherwise. It is early days for the new financial plans and recovery. The economy will get a bit erratic at first from the change. Cutting the deficit is the right thing to do, there is simply no more money and certainly giving it to bond traders (as interest) is a waste.
  • AndyGuil wrote: »
    It accounted for being down 0.5%. It would have been 0.0% otherwise. It is early days for the new financial plans and recovery. The economy will get a bit erratic at first from the change. Cutting the deficit is the right thing to do, there is simply no more money and certainly giving it to bond traders (as interest) is a waste.

    If you say so. :eek:
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    wolvoman wrote: »
    Ireland isn't really comparable, it is/was a tiger economy not an established one.

    The US - that's a fair point. But they created a large deficit more by tax cutting than spending increases.

    It's a simple fact - the UK has a large structural deficit that needs to be removed. Gordon Brown and Tony Blair created it. Tony Blair now admits they spent too much. Ed Milliband has said would spend even more. More money we DON'T have.

    The UK had the largest relative financial economy of the major western economies, the world suffered a financial crisis, hey presto ;)
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • smeagold
    smeagold Posts: 1,429 Forumite
    AndyGuil wrote: »
    It accounted for being down 0.5%. It would have been 0.0% otherwise. It is early days for the new financial plans and recovery. The economy will get a bit erratic at first from the change. Cutting the deficit is the right thing to do, there is simply no more money and certainly giving it to bond traders (as interest) is a waste.

    I think your recovery just got cancelled
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  • All I know is that its looking good for my oversized mortgage. :D
  • AndyGuil
    AndyGuil Posts: 1,668 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    If you say so. :eek:
    Shops make up to 80% of their annual turnover at Christmas, it is easy to see why this has hit the economy. Also if people can't get to work then that is an additional hit.
    smeagold wrote: »
    I think your recovery just got cancelled
    This year will be tough that's for sure.
  • StevieJ
    StevieJ Posts: 20,174 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    AndyGuil wrote: »
    Shops make up to 80% of their annual turnover at Christmas, it is easy to see why this has hit the economy. Also if people can't get to work then that is additional hit.


    This year will be tough that's for sure.

    I shouldn't imagine it is too much fun building those houses either :eek:
    'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    StevieJ wrote: »
    This is total overreaction just like happened after the 1.2% rise in Q2.

    Totally agree. As if the economy was something that can be controlled by pressing a button.

    There was always going to be a squeeze. People that thought the recession had passed last spring and everything was back on track were mistaken.

    For the record this is still Labour's economic policy not the coalitions. Something that Milliband and Balls will have to tread carefully with. The cuts haven't even started yet....
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