A real recovery?

Recessions can be likened to dieting. They may be good for the long-term health of the economy but they are unpleasant to endure and it is a great relief when they end

It is surprising news of the UK’s emergence from the ‘great recession’ was not met with greater enthusiasm by investors and economists. The cause of this lacklustre response can be traced to the miniscule level of GDP growth (0.1%) that ended the recession. Rather than celebrating the cessation of the lean times with a cream bun, the economy appeared to end its enforced diet with a lettuce leaf! A difficult conundrum A debate has arisen between those who expect the return to growth to be the springboard to a sustainable recovery and others who believe it simply represents a brief inter...