11:44 AM, 16th November 2012, About 10 years ago 2
The Bank of England Inflation Report November 2012 shows the growth of GDP for this quarter at 1% behaving entirely as predicted. The 1% growth is made up from a 0.5% bounce back from last quarter’s extra Jubilee bank holiday, 0.25% from Olympic ticket sales and 0.25% from the extra spend by Olympic visitors.
Therefore the economy has effectively flat lined contrary to popular press reports and political wishful thinking. The Bank of England are predicting that by the time you strip out an extra working day that GDP for the next quarter will probably fall again by 0.5%.GDP is still 4% down on 2007 levels and the latest forecast for long term growth by The Bank of England is the lowest ever at 1% over the next year. If you take into account the predicted growth figures in 2007 families will be 20% worse off than expected by 2015.
One of the key statistics the Bank thinks reflects the economy performing so badly is employment productivity. The good news seems to be that unemployment is falling with the private sector taking up the reduction by 10% in Public Sector jobs and that inflation is being kept under control with workers pricing themselves into employment and not demanding pay rises. However if you take the total number of hours worked we are actually now 12% less productive.
It is the stifling of productivity in Europe by Bureaucracy and the lack of reward for hard work through increased taxes that is a huge factor in the European economy falling behind the rest of the world. I do not want to run into trouble with a political debate, but Europe has historically been the worlds driving force for innovation and industry so draw your own conclusions.
I would love to hear your own views and comments from the statistics provided.
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