Whether this is good news depends on whether you believe this was just a temporary cyclical effect, in which case stronger growth in past years might just mean slower future growth, or whether you interpret the figures as suggesting that the long-term sustainable growth rate of the economy has increased.
There are two reasons why you might accept the second interpretation.
First, the change primarily reflects lower estimates of inflation in the economy as a whole. Second, the figures suggest growth was more balanced than previously thought, with less reliance on consumer spending and more on investment and net exports, which might make it more sustainable.
If you believe this more optimistic story, then it might reduce the need for increases in taxes and interest rates. But that is a big ‘if’ at this stage.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements