Yes, there are all kinds of services.
THE British economy is still online. An expansion of 0.1%, to a key measure, is about as close as possible to zero.
The gross domestic product per capita – a better measurement of our standard of living – shrinks (indeed, it has shrunk for two quarters). And the United Kingdom remains much lower than the main economy of the G7-the United States.
But even after taking all this into account, it is difficult not to conclude that the chancellor will celebrate Today’s GDP figures. After all, economists expected the economy to decrease by 0.1% rather than growing. Thanks to a late growth in December, it increased.
In addition, until today’s figures, the profile of economic growth in the United Kingdom was frankly quite dismal. There has been no cumulative growth since last year’s elections. Now, thanks to this jump in December – an unexpected late Christmas present for the Chancellor – cumulative growth since the elections are now 0.4%.
Of course, none of this changes the greatest economic image. The British economy is still stuck in a rut. The enormous growth of migration in recent years means that, once you take into account the growing population, there is much less income that float for each family than a few years ago.
And vast expanses of the British economy are in desperate difficulty. In particular, the industrial sectors that had used a large part of the country’s growth contract at a rapid rate. It is not only a problem in the United Kingdom – it is shared with a large part of Europe. In Germany, the economy contracted two successive years. This deindustrialisation is one of the most important problems that the continent is faced.
And it is before we consider some other difficult problems: the real impact of the budget last October has not yet been felt in the economy. The Office of Budget Liability should largely reduce its growth forecasts next month, which could encourage the Chancellor to reduce additional spending in the years to come.
Then there are other even deeper challenges. What happens if and when the United States imposes large-scale prices on British imports? How will the United Kingdom allow the spectacular increases in defense that the expenses of the White House require? Now, more than ever, it is quite plausible that external events have impacts on the British economy.
In short, although today’s figures will be a relief from Downing Street, it is not quite clear how long this feeling of relief will last.