Better than expected Q1 growth masks the real threats to the economy
There was always the strong possibility that, having expected and mentally banked the revision to the recorded rise in first quarter UK from 0.2% (the statisticians’ first stab at GDP made in April) to 0.3%, there might just be some disappointment at the figures when they are held up to the light.
And on that note, I was interested to see Jonathan Loynes, chief European economist at Capital Economics, express some qualms about the figures pointing out that much of the growth has come from rebuilding stocks and from government spending. The impetus provided by both will be short lived and in the case of government is set to reverse quite markedly.
To read the rest of this article, visit Brian Green’s Brickonomics blog.