"Don't panic Mr Mainwaring....just yet!"
LIKE MOST FOLK, I was a little jolted by the recently published figures showing Britain’s GDP going into reverse. However, I’m not getting overly worried.
The service sector makes up about 75% of the UK economy, and bad weather at the tail end of last year definitely affected Britain’s ability to function. We all saw it with our own eyes.
January is back to normal, weather wise, and with other major economies like Germany and the USA registering positive GDP growth , I think we’ll follow suit in the 1st
quarter of 2011, thus avoiding an official double dip recession.
If I’m wrong, there will be some serious reassessment of Government tactics. Yes,
there will have to be some short term pain with regards to unemployment, insolvencies and consumer confidence……economic pundits expect all that…. but a return to recession, when other countries avoid it, will heap some very unwelcome pressure on George Osborne and his Coalition colleagues.