The latest UK GDP data confirm that the British economy remains in a crisis. As government spokespersons never tire of telling us the opposite, and are dutifully echoed by the majority of the media, then it is important to set out the factual case on the economy and to explain where the discrepancy between rhetoric and reality arises.
Once the factual analysis is made the following points are clearly established:
- The UK remains in a crisis
- On key measures of the living standards of the population, the UK is in the worst position of all the advanced industrialised economies
- Fundamental economic factors mean that this crisis is set to deepen
- The project of austerity will be resumed with a vengeance in response to Brexit
The UK economy grew by just 1.8% in 2016. This is below the average growth level since the recession, which itself has been miserably weak. On a calendar year basis, the recovery began in 2010. Since then GDP growth has been an average of 2%, so 2016 was among the slower years in a poor recovery. Continue reading