29 Apr '14, 4pm

Rising GDP? Don’t believe the hype:

Rising GDP? Don’t believe the hype:

Rising GDP: don’t believe the hype Photo credit: Walk Bedford April 29, 2014 // By: James Meadway Today’s GDP figures , covering the first three months of 2014, tell us that the return to growth over the last year has settled in. But the headline figures disguise a set of serious, and perennial, problems. First, forget about rebalancing . This was the entirely accurate idea, once quite popular in government circles, that part of what drove the whole economy into the wall in 2008 was its over-dependence on the service sector – finance in particular. The crash in the UK was so bad, and the bailouts so expensive, precisely because finance was so big. The plan was to ‘rebalance’ the economy with a ‘march of the makers’. But while manufacturing has grown strongly over the last three months, on current performance manufacturing output will not recover to its 2008 level before 20...

Full article: http://www.neweconomics.org/blog/entry/rising-gdp-dont-be...

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