The UK economy returned to modest growth in the first three months of 2011, official figures revealed today, following a shock decline at the end of last year.
Gross domestic product (GDP) - a broad measure for the total economy - grew by 0.5% in the first quarter of the year, following an unexpected drop of 0.5% in the final weather-hit quarter of 2010, the Office for National Statistics (ONS) said.
All this makes bleak reading for George OSbourne as he looks to re balance the economy. I think these figures clearly show a failiure to bring in growth for the UK. These figures include figures since VAT went up in January to 20% but dont account for teh oncoming savage spending cuts by the government. THe next quarters figures will be very interesting indeed.
In the figures we can see that construction took a big hit no doubt as a result of loosing many contracts for building schools projects and a stagnation in house building market.
All this confirms mine and many others thoughts that cutting our way out of a recession is never the way to go. George Osbourne and his tory pals have not learnt the lessons of history. Although this 0.5% shows growth it is only returning to what it was in the third quarter of last year. This is in affect a 6 month stagnation . Whatever spin these political types and media who do a good job of spinning them for them too there is no way these figures show the tories plans are working.
Labour of course have no reply on this whatever they say they would have only cut 2 billion pounds less this year and had no ideas for real growth either.
Time after time i remind people that capitalism is broken and you cannot reform the system. Only a over throw of the system to bring the heights of the economy into public ownership will fill the public purse with funds to reinvest in the services we so badly need.
Removing the economic power of the rich and redistributing wealth to the many would by my idea of making society a fairer society.
2011 with spending cuts ahead looks to be anotehr bumpy year for the British economy. With growing fears in the global market of the likes of Greece and Spain defaulting on its debts the fear of a crisis in the capitalist society is bound to spread.