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Britain's worst recession in living memory is over, one of the City's leading forecasters proclaimed today.
Jim O'Neill, chief economist at Goldman Sachs, said the country had pulled out of the financial crisis and the economy was already growing again.
As he spoke, the FTSE 100 hit a year-high as optimism spread through dealing rooms. By mid-afternoon it had fallen back slightly but was still up 30 points at 4,746.
France and Germany today officially emerged from recession - their economies grew at 0.3 per cent between April and June because of strong exports and consumer spending.
Mr O'Neill believes Britain also came out of recession in June, although official figures have yet to confirm his views.
In an interview with the Standard, Mr O'Neill said: "It is clear given what we have seen from Germany and France that things have improved much more quickly than people expect. I would say the UK is out of recession this quarter."
Neville Hill, an economist with Credit Suisse, agreed.
He said: "Our view is that the UK is out of recession now and will post positive growth in the second half of the year."
Following the announcements from France and Germany it was suggested that Britain was being left behind.
However Business Secretary Lord Mandelson welcomed economic contraction that happened in Germany was worse, it started earlier and it went to a lower depth than it did in Britain and I am very pleased and encouraged that Germany is making the recovery that it is.
"The Governor of the Bank of England said his outlook is stronger and that outlook will become even more positive as other economies seem to recover."
Lord Mandelson said Britain still needed to "keep going" with costly measures to help improve the economy.
Earlier shadow chancellor George Osborne agreed that it was good for Britain that its European partners were recovering as they were key export markets.
But he added: "It is striking that the economic data for the same period for Britain has shown a continuing sharp contraction in recession."
Tory leader David Cameron said: "In contrast to France and Germany, Britain is still shrinking and this shows how Gordon Brown has been getting it wrong on the economy," he said.
Mr O'Neill and Mr Hill are more optimistic than some other City economists who believe a so-called "double dip" recession - a brief recovery followed by another slump - is possible.
Yesterday, official figures showed that 2.4 million Britons are now out of work, with unemployment likely to top three million next year.
Government figures for growth in the third quarter - July, August and September - will not be released until mid-October. Mr O'Neill said these numbers could give a fillip to employers and consumers - and to Mr Brown.
"I think they [politicians] did a good job," Mr O'Neill said. "I continue to read staggering amounts of gloom and doom from all over the place. We have had the biggest amount of economic stimulus the world has seen in modern times. They have kind of got it right."
He conceded it will take some time for the recovery to properly kick in.
"We have lost a lot of growth which it will take a couple of years to recover. But it won't take as long as people think," he said.
Reader views (69)
Mr Cameron is not going to make any difference to the Uk, EU membership costs every Britain £2,000 per year The Common Agricultural Policy costs Britain The Common Fisheries Policy costs Britain. Over-regulation on business costs Britain membership of the European Union costs Britain. Fraud: Due to the EU being riddled with corruption it is likely that the equivalent of Britain's entire net contribution to the EU is going into the pockets of fraudsters. THE EFFECTS OF FREEING BRITAIN FROM THE EU: A BOOST TO THE ECONOMY as every Britain has a £4000 debt from the ConLab party we would be out of debt in two years, the EU is the problem and the UK is losing the war that they don't know about? The pen is mightier than the sword the recession is man made just like peak oil $200 a barrel what happened with that one? Time to play that game again some day.
- Gaswork, UK, 14/08/2009 08:14
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These economists are baboons! They are only experts at picking BOTTOMS. Not one of these "experts" saw this recession coming warned us on what we need to do to avoid it but they are all "experts" at saying it's over...the mind boggles
- Lb, Southampton, 14/08/2009 07:55
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There are a couple of simple reasons that the uk will take a hell of a long time to pull out of the recession.
1)WE PRODUCE AND MANAFACTURE BUGGER ALL
2) WE ARE IN DEBT UP TO OUR EYEBALLS
We will still be paying off the national debt when i am laid in my pine box.
I do believe (and correct me if i am wrong) that the national debt is greater than the debt we had after World War 2.
AND WE ALL KNOW HOW LONG THAT TOOK TO PAY OFF , EVEN WITH BRITAIN RUNNING FLAT OUT WITH OUR MANAFACTURING BASE(WHICH WAS ONCE THE ENVY OF THE WORLD).
What the hell do these so called economists take us for .
WAKE UP AND SMELL THE CHEESE AND YOU WILL FIND OUT IT IS ROTTEN, AND HAS BEEN SINCE LABOUR CAME TO POWER.
THE TORIES WERE NO BETTER EITHER.
BRITISH DEMOCRACY IS A SHAM.
WHAT MAKES THESE PEOPLE THINK THEY ARE WORTH MORE THAN A NURSE/CARE WORKER/GENERAL PRACTITIONER OR INDEED THE HUMBLE HOUSEWIFE(GOD BLESS HER).
HANG YOUR HEADS IN SHAME.
MR ( I HAVE HAD ENOUGH OF THIS RABBLE) PASTRY
- Mr Pastry, london, 14/08/2009 07:09
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"Happy days are here again ....." All this from the ones that led Britain down the hole, and you know how good they are predicting what is happening. The future is Asian and there is nothing Britain does that cannot be done elsewhere because the government has stifled the populations talents and genius. Enjoy the ride down.
- Mr Pastry, Brisbane, 14/08/2009 04:33
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Wish it said,
'Britain's worst chancellor and pm in living memory is over'
- Isabella, London, 14/08/2009 02:12
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But we were told by Labour front benchers for months that we were in the best position to ride the storm than any other country. Surely they weren't lying.
I wonder if Jim O'Neill's colleagues laugh and snigger at him behind his back. They should.
- Np, Cornwall, UK, 13/08/2009 23:38
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Apart from the usual copy & pasted light relief provided by Keith, there is some serious wishful thinking going on in the halls of government (both that what they say might even happen one day, and that people will be gullible enough to believe it is happening now). Playing with numbers doesn't take away the underlying rot that is now well established and continuing to eat away at the foundation of a once proud nation.
- Rogan, Irving, 13/08/2009 23:09
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Germany eh - they still make stuff there don't they and don't sell their best ideas to non-German firms.
France - it must be the lovely Carla Bruni.
As for the UK - some of our politicans are oily enough to solve our energy needs for generations to come- now let's see if the price of oil plummets as the rest of the world realises this.
- Great Grandchildren Will Be Paying For Mr Brown'S Arrogance, London, 13/08/2009 20:34
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I see Franks off on one again! just how will a general election stimulate the economy?
As Dodgy dave and his gravy train pals have no economic policy i would be intrigued to know. Or are you just spouting more garbage without a shred of evidence to back up your argument. Mind you, you have some good company, Rueben and Mickinlondon for example, do you all attend the same day care centre?
- Kerry, Purley, 13/08/2009 20:14
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Over? Dream on.
- Dave Davies, Basingstoke, Hants, 13/08/2009 20:02
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Recession over! Time to raise taxes, hire more gvt employees, more union benefits, more raises.. woopie!!
- Trunk, US, 13/08/2009 19:48
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Recovery, tell that too the marines, unemployment above 1995 levels and Government hanging into office, rather than calling a General Election.
- Andrew, London, 13/08/2009 18:46
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Britain has been economically but also socially destroyed by Mr. Bean Brown. Crime is out of hand and there is no money to pay for police left... The death through taxes that is Bruun's legacy.
- Steveo, London NW1, 13/08/2009 18:27
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now are you all sitting comfortably?
one day not so long ago a big bad banker, a politician and all their friends who had been making a lot of money from being very naughty suddenly found that all the nasty little games they had been playing had been found out.
at first they tried to say they hadn't been bad and nothing hoprrible was going to happen. but very slowly the truth came out and it was very hard to keep saying they hadn't been bad boys.
then some of their friends who looked after everybody in the countries money said don't worry i'll let you have lots of these other peoples money, they won't really understand it anyway and they're just silly little people who work very hard for a small amount of money, which we mostly take away.
so instead of having to stay in the corner with the dunces hat on, these very naughty people had lots of money again and they lived happilly ever after.
meanwhile the wicked wolf ate up all the silly little people who had worked very hard, payed lots of money to the bank and politicians and were still happy to believe what they were told as they shivered and starved while waiting for the wolf to finish gobbling them all up.
so remember children if you cheat and lie you might just be lucky enough to be a banker, or politician when you grow up.
- M.O'Brien, london.uk, 13/08/2009 18:14
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France and Germany today officially emerged from recession - their economies grew at 0.3 per cent between April and June.
Grew by 0.3%! Sorry but as anybody who does statistics knows any set of numbers contains errors between +/- 4.0%. Thus 0.3% is just 'noise' and NOT a sign of an emergence from recession. Let's see what their next quarters shows before make any rash statements about a recovery!.
- G Thumper, Yateley, Hants, UK, 13/08/2009 18:09
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Why was the UK so badly prepared for this recession? There is no money left in the kitty and taxation seems to be already the highest in the developed world... Crash Gordon should think before he speaks and at the next possible moment do the honourable thing. He will never be forgotten anyhow - shame it is because he was so bad!! No wonder sterling is so weak on the international markets there is no confidence in those Nu Labor experiments anymore. Crash Gordon will never be elected...
- Georgie, Islington, London, 13/08/2009 17:20
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Is this the same Jim O'Neill of Goldman Sachs who not so long ago said there wouldn't be a recession? Or is this a different one?
- Percy, London, England, 13/08/2009 17:20
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Just look at the technology being used in the German factory at the start of the video and then that used in the British factory at the end of the video...sums it all up really!
- Oddball, UK, 13/08/2009 17:12
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Jide
"What Britain needs is a white Obama"... ehrr I think you will find that Obama is more like Tony Blair than you could possibly imagine! Utterly horrifying, having lived under Zanu Nu Labor from 1997-2007 I am well placed to see the parallel. The US version of the NHS will have to cope with the huge burden of US tort law unlike the UK where litigation isn't nearly as frivlous or punitive. The obesity problem and its costs are higher here too and the illegal alien problem is also a major cost factor.
Otherwise Obama's only other plan is to screw the middle class for more taxes
Figures released by the IRS show the following;_
1) the top 1% of US taxpayers pay 40% of all taxes.
2) the top 5% pay 60% of all federal taxes
3) That 75% of taxpayers paid 13% of taxes
These show that the "rich" ....are already being soaked in the USA, unlike the blatant lies being told by Obama .
The 5% income band by the way includes income of $160k-$410k, not especially high when you look at the cost of living in the USA and the value of the US$.
A further factor to consider in the burden of taxes borne by the rich is real estate taxes. A modest family home can face taxes of over $25,000 a year!! Add that the middle class tax bill and you suddenly see a very different tax picture. That same house would pay Council tax of say $3500 in the UK!!
- James Macleod Ritchie, Oyster Bay Cove, 13/08/2009 17:05
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Amusing did any of these economists pick the (almost) global meltdown ..... that goes to you amateur economists that have commented here .... like trying to shoot a target in the fog .....
- Simon Se1, london, UK, 13/08/2009 16:58
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Also in the news - collision with flock of pigs forces Air France flight to make emergency landing at Gatwick.
- Kevin T, Beckenham, Kent, 13/08/2009 16:37
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It's an upturn before a bigger down turn I'm afraid. The foundations are still sand. The improvements are superficial due to created money..Q.E. and near zero interest rates..both policies are simply taking savers money and lending it short term and cheap to borrowers. Germany and France's upturn may be more genuine as they did not have housing bubbles and have not used Q.E. to the same extent. WE may get stagnation for sometime before inflation kicks in and interest rates rise fast..it could be chaotic..or even more so. If your job is safe and you don't have a silly mortgage and negative equity you may do better in this situation but unemployment will rise to well over 3 million early next year..further creating the divide between the have and have nots. When The Tories get in the public sector jobs will be ransacked and those who are currently protected from the realities of the economy will suffer too.
- Corbo, Norwich England, 13/08/2009 16:26
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So this is what Brown meant when he said "we saved the world", eh apart from us then.
- Norbert -Gooner, london, 13/08/2009 16:23
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Before we crack open the champers, don't forget that we (we few, we employed few) have to pay back that historic legacy of Brown's clowns.
Which is debt more debt and then another enormous mountain of debt, with a desert of lashings of debt. A devalued currency, crumbling infrastructure, virtually non existant border controls etc. This means cuts, more cuts skyrocketing taxes and cuts. Hard to see any 'gween shewts of recuhvry' when your suffocating under a mountain of debt with a public payroll/welfare burden round your neck.
IMO It will be twenty years before this nation is back on it's feet, if at all.
Some quotes.
The trouble with Socialism is that eventually you run out of other peoples money. M. Thatcher.
"You cannot spend your way out of a recession."
Gordon Brown 1997.
"A weak currency arises from a weak economy, which in turn is the result of a weak government."
- Gordon Brown 1992
- Ethan, UK - Bankrupt Britain, 13/08/2009 16:20
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If there is a slowdown in the recession and maybe some improvement, that would be despite the efforts of Brown/Balls and the efforts of King to further destroy sterling and our economy (QE, =good old devaluation).
I believe our recovery will be slower than other countries because our massive debts, courtesy of Zanuliebour, notwithstanding the facile comments of Keith Price, presumably acting on instructions ex Whitehall.
There are many more skeletons yet to fall out of the cupboards of Brown/Balls and Lady Rio is a snake oil salesperson, well known for false declarations, mortgages and expenses, etc.
- Hugh, Middx, 13/08/2009 16:19
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Oh my goodness: surely there cannot be TWO Keith Prices!!
- Roz, France, 13/08/2009 16:19
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The UK has changed in the last 15 years and is one of the most materialistic countries on earth and no happier for it and as a consequence when wealth is trimmed during a recession we feel it more;perhaps we all have our priorities wrong.
- Tony ,Essex, Harlow,UK, 13/08/2009 16:11
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GS is the government and is clearly talking its own book.
- Peter, Dubai UAE, 13/08/2009 16:05
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Well done France and Germany. Let us hope that Mr O.Neil's optimism for the UK economy proves accurate, but it appears to be based upon hope rather than experience and such triumphs are usually illusory. Let's not throw our hats in the air yet.
- James Elliott, Eastbourne UK, 13/08/2009 15:46
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With about 1 in 10 of the working population unemployed thanks to Mr "Zero Percent Growth" Brown, hardly feels like the end of the recession...
- St, London, 13/08/2009 15:41
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Britain is not coming out of recession (unless you believe the BBC), it is merely that the rate of decline is reducing. Nevertheless, matters are still worsening but it is true that Germany/France are doing better than us. Who was it who said we were best placed to weather and come out of the recession? Oh yes, the man who caused it. I do hope it's raining in the Lake District.
- Roger, Winchester, England, 13/08/2009 15:40
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Very well done Gordon Brown for rescuing the country from the worldwide economic recession, which has hit many other countries far harder than it has us here in the UK
- Keith Price, Luton England, 13/08/2009 15:19
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The financial system, here and in Europe, is fluid (let's see which way the unemployment situation pans out), and could still be flushed down the tubes by unexpected events from the USA and Far East.
- Ted, London, 13/08/2009 15:18
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It is all well and good that you want Gordon Brown to call an election so you lot can vote out Labour. The problem comes when you vote in the Conservatives without knowing what their policies are or what they intend to do with the economy. Not one of you writing this drivel about Gordon Brown can tell me three (3) policies that the Conservatives intend to implement if (and let us hope it is a big one) they make up the next government. This is not the X Factor people! Get a grip! Almost every leader and most economists (if you really pin them down) will admit that Gordon Brown has done a good job in this crisis. Get over your "I want it now!!!" attitude and take a look at the policies. Then make a decision, I think you will change your mind, if it is open in the first place. For heaven’s sake do not cut off your nose to spite your face.
- Marvin, London UK, 13/08/2009 15:18
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These figures are good news but need to be seen in context. The UK has a huge financial services component which has been hammered and remains in a fragile state. The bigger the bionge the bigger the hangover! By contrast it should be remembered that industrial orders fell by over 40% in Germany and France. These were real and dramatic collapases in induistrial activity. The rebound may well be a natural recovery in essential orders but also be a "dead cat bounce". The risk of a double dip recession in the UK is a real threat because many people right now are surviving because ultra low interest rates have trimmed variable rate deals to rock bottom. As the economy recovers, rates will ratchet back up again removing increasing the mortgage payment pain. Those looking at a rapid rebound are simply ignoring this as well as the continued unemployment drag on the economy.
Real reform of the economy is required starting with a sweeping clearout of the Brown State sector sucking the life out of the economy. Cutting State spending and then taxes is essential to a longer term vibrant UK economy.
- James Macleod Ritchie, Oyster Bay Cove, 13/08/2009 15:17
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Blimey Keith Price, the other week whilst driving through down town Luton, I thought Britain was on its last legs. Never seen so many houses boarded up.
- Toni, Harpenden, 13/08/2009 15:11
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Alan you make me laugh, the European parliament is worse than Westminster, their expanses are more scandalous and there is so much beaurocracy it is crazy. As for the recession we will recover you just have to grin and bear it.
- Jeremy, London, 13/08/2009 15:08
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"Britain's worst recession is over".
Of course it is! That is WHY there are 4,000,000 unemployed in the UK, rising to 7,000,000 unemployed in the UK by the end of 2010.
That is WHY firms are going to the wall faster than you can swat a fly.
That is WHY the ONLY PERSONS in the UK with funds are bankers and MP's.
The housing market is going nowhere fast.
Pensioners in the UK are starving to death.
Six of my friends are now selling up and taking their families to New Zealand.
Will the last person to vacate the UK turn out the lights.
- Reuben Camara, Republic of Morecambe, UK, 13/08/2009 14:45
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Strange how I read in this mornings UK press about Germany & France being on the way out of recession, and how far we were lagging behind their recovery and then Lo & behold, within a couple of hours hours this article appears.
I have never failed to be amazed at how quickly this current government can respond to all eventualities. I could well imagine that the £50,000 cash injection into the most needy towns all over the country is at the heart of the spontaneous upturn.
- John Clifford, luzern, Switzerland, 13/08/2009 14:41
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UKIP is the only political party that can save Britain from total destruction,there is now very little to differentiate between Brown and a ventriloquists dummy,the Zanu Labour administration look and sound like crooks and wish to destroy every last thing that Britain has achieved,there's little point and little difference in voting Tory,its got to be UKIP.
- Jacob, Canterbury Gulag England, 13/08/2009 14:30
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Britain appears to lag behind most of europe on a lot of things, why not a recession.
- Mr S.Port, London, 13/08/2009 14:11
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Alan, Islington: you can be in Europe without having a Federal Goverment - I used to be Eurosceptic, but now I live here I don't see the French giving up their national identity, nor their boundaries, nor their Government. I think there is a lot of Euro-scare-monguering based on ignorance or to deliberately obfuscate the benefits of co-operation. From the European perspective, the risk of a Federal State looks most likely to come from the UK, which has made a wholesale grab for power from its citizens in the last decade, which has a Police Force which raids the parliamentry offices of opposition candidates, which wants long periods of detention without charge and which launched a war in Iraq with out the legal compliance of a 'declaration of war'. Having been trampled over by dictators in the past, a lot of Europeans find it all rather worrying.
I'd say the truth is that France only made small waves in the boom, so it's only getting it's face a bit wet in the rebound. As for Keith Price: surely this man is really Sacha Baron Cohen testing out his next character . . . ?!
- Roz, France, 13/08/2009 13:50
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Ahh the crazed Keith Price of Luton is back with his stock in trade phrase about Our Gord saving the uk or some such nonsense. Go see a doctor Keith, you are clearly suffering from delusions.
- M, London, 13/08/2009 13:50
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Quote: Rod, Epping, UK. Why do you spout so much drivel every day?
Bad education, Rod; I failed my eleven plus in 1950.
Quote: We are finding it harder as a country to drag ourselves out of recession because of many things, but mainly that we are more successful in the markets, and will take more time to adjust to different conditions. We are all inclined to put this country down when we can but in reality we are bloody good at what we do. Be proud to be British
I am happy to hear how successful we are in the markets, Rod; let’s hope we adjust to the different condition fast.
By the way, Rod; what are the conditions?
I am English by the way, not British, Brown is Scottish not British; maybe that is our problem, Rod.
Apologies for my drivel, Rod; I am old and senile and smile a lot; please forgive me, my sins
- Mickinlondon, london., 13/08/2009 13:41
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"Dump sterling and adopt the euro, Move to a federal europe" ??? hahahahahahahahahaha.. the Euro and ECB policy have practically bankrupted Spain, Portugal, Greece and Ireland, while a flexible (weak) currency makes what we do manage to export more attractive.
I'll support full EU membership the moment the auditors authorise the corrupt EU accounts .... but I'll be long dead before that happens (and I'm not THAT old ....)
- Paul, London, 13/08/2009 13:37
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I agree, changing the govt. will not improve the economy..the policies and attitudes need to change. Britain needs a white version of Obama ( i have to be real). I dont see Britain coming out of the recession in the next 5 years. All figures are manipuated on unemployment, housing, borrowing and living standard. I travel the lenght of the country...it does feel more than 10% of the population are unemployed not the 2.44 million advertised on TV. People still can't sell their homes... the goverment are playing with figures... people are now buying basic food stuff on credit cards...kids are out of control and our old are out in the cold. Let the people that make decission for us be honest for once and help who they serve.
- Jide From London, London, 13/08/2009 13:02
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Dump sterling and adopt the euro
Move to a federal europe and make westminster redundant
We are clarly incapable of managing our own affairs anyway
BNP/UKIP just want to make us all poor and unemployed by keeping us out of Europe
- Alan, islington, europe, 13/08/2009 12:36
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Mickinlondon, london.
Why do you spout so much drivel every day? The article is about European differences and nothing to do with the Far East, for example.
We are finding it harder as a country to drag ourselves out of recession because of many things, but mainly that we are more successful in the markets, and will take more time to adjust to different conditions. We are all inclined to put this country down when we can but in reality we are bloody good at what we do. Be proud to be British.
- Rod, Epping, UK, 13/08/2009 12:29
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Well done PM Gordon Brown for rescuing the country from the worldwide economic recession, which has hit many other countries far harder than it has us here in the UK
- Keith Price, Luton England
With first class comedy like that you should be on the stage Keith. Unfortunately in reality as the article clearly informs us we are still in recession (Thanks to Gorndon Clown and Lord Mandlespin ) whilst our EU counterparts are not. Thats real not your hilarious 'opinions' comrade. Still as your parties hero Josef Goebbels said. "Tell an lie often enough......
- Ethan, UK, 13/08/2009 12:09
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Have lived & worked now in France for over 10 yrs I can confirm that the banking system can appear to be unhelpful. You cannot get a mortgage (max 80% since forever) if your repayments exceed one third of your monthly income.
Credit cards do not exist!Only debit cards! If you write a cheque that bounces you can possibly lose the the right to a bank account. Draconian perhaps but the frogs seem to have got it right!!
- Albert, Draguignan France, 13/08/2009 12:06
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These are only 'preliminary' figures and could easily be revised downwards.
- Paul, London, 13/08/2009 11:51
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Well done PM Gordon Brown for rescuing the country from the worldwide economic recession, which has hit many other countries far harder than it has us here in the UK
- Keith Price, Luton England, 13/08/2009 11:47
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The next ten months will be bleak for UK citizens - but once we get rid of Brown and the thieving politicians and elect "Independent" MPs who have a sense of decency, honesty and integrity - we will begin to see a recovery. The current incumbents must never be allowed to hold office again - and all second homes which we tax payers have paid for must be sold and the proceeds returned to the public purse.
- R.F., Yorks, UK, 13/08/2009 11:45
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Germany and France may show minimum growth and this might justify the catching headline of this article, but to be fair one has to look at how dramatically the economy has shrunk on the continent during the downturn and also compare the unemployment rates these countries have to the UK. Maybe the champagnes bottles shouldn't be opened just yet on the continent. The UK is not doing so badly after all.
- Carsten, London, 13/08/2009 11:37
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Martin in Clerkenwell is right about the lack of State regulation on a number of things. In France there only several weeks a year in which shops may hold a sale so they can genuinely clear stocks instead of just lure people in with year-round phoney 'price-cuts'. Another important difference is the regulation of the insurance industry: again, there is only a prescribed time period each year in which you change or renew your insurance and they aren't allowed to sell insurance as sales industry. If you need to claim they pay out without huge penalties later. It really angers me when I read about Europe imposing 'Elf n Safety' laws on Britain and this resulting in something like a village fete being cancelled: in reality this is not for compliance for European laws, it is about compliance for getting public liability insurance - the insurers won't insure the event unless it is utterly risk-free 'in case someone sues'. I have seen no evidence of an increase of people suing, only the spectre of 'they might' to scare people into buying more - whether it's an extra year's warrantly on a radio that puts up the price by 30%, or car insurance which, if used, puts up premiums the next year, or the industry Big Boys who bully everyone else into holding an event in a padded cell to be safe.
The insurance industry needs regulating just as much - if not more than - the banking industry.
- Roz, France, 13/08/2009 11:21
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Our recovery cannot commence until puppet Brown and Mandelspin have gone.
- St, London, 13/08/2009 11:13
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The UK has lived for so long on borrowed money, now it´s living on borrowed time. The UK´s reluctance to commit itself whole-heartedly to the EU means it is lagging behind and will continue to do so. It´s not just the larger economies that are leaving the UK behind, so are the smaller ones, like Belgium and Holland.
- Graham Rodhouse, Helmond, Netherlands, 13/08/2009 11:07
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Quote: Mark H, London England. It couldn't be because France and Germany have economies that are more "prudent"...Could it..?
-------------------------
It could be because Germany and France are exporters of their manufactured goods Mark; whilst the British are now wholesale importers of the good manufactured over-seas etc.
India and China are no modern miracle, Mark; they are growing fast because we give them our jobs to do, and they earn our workers money, which makes our workers sign on the dole.
The only growth Industry in the UK today; is Bankers and Politicians, they are everywhere.
We cannot export our Bankers and Politicians to China or India; as China and India are not ideal habitats for Bankers and Politicians; over there they would all have be executed by now; so its not a viable option for those that run the UK.
- Mickinlondon, london., 13/08/2009 11:05
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Leading figures can talk a currency up as well as down.
Money is the greatest confidence trick which relies solely in that confidence people hold the value to be.
When the Governor of the Bank of England says the recession is worse than they originally believed Sterling will fall on the international market.
On the other hand the Germans and the French are more up beat and so the Euro will rise regardless of the true facts.
- Bernard Parke, GUILDFORD, 13/08/2009 10:58
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economies that have larger state sectors and typically higher levels of personal taxation. Is this therefore the problem with Nu Labour - too free market focused and therefore too right wing?
- Martin_Clerkenwell, london, 13/08/2009 10:49
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Better educated, better politicians, better values.
- Davidke, ramsey isle of man, 13/08/2009 10:40
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Nothing to do with the £170m a day we pump into them?
- Jimbob, Kensington, 13/08/2009 10:18
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It couldn't be because France and Germany have economies that are more "prudent"...Could it..?
- Mark H, London England, 13/08/2009 10:17
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I can only speak for Germany - having lived there - that it is a nation VERY cautious of credit and how they spend their money. There are still stores that do not accept credit cards and Germans tend to like to use cash to buy things - so no cash, no buy! I can see huge differences between the UK and Germany in that sense so of course it is to be expected that the country pulls out of the recession faster. We have a lot to learn here.
- Dan, Surrey, 13/08/2009 10:13
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But Gordon told us we were best placed to ride out the downturn. Could it conceivably be that Gordon was lying? Is the man incapable of telling the truth?
- Alex C, London, 13/08/2009 10:07
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So Gordon was telling a porkie when he said we were uniquely well placed to recover? That's a shock. Wonder if this will stop him telling the rest of the world what they should be doing? Can we have an election now please Gordie?
- Johnfaganwilliams, London, 13/08/2009 10:04
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Why has the government managed to convince so many people that the recession is a "world recession"? It isn't, it started in the UK and the USA because of catastrophic mismanagement by politicians who know nothing about economics and it will end in the UK and USA. Countries like Germany and France have historically been better managed than the UK, their politicians are more intelligent, they look after their own industries, they invest in their infrastructure and they don't encourage policies that cause absurd house price inflation and end in boom and bust. That's why they are already out of this recession.
- Mike, London, 13/08/2009 09:36
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People live life more simply here and what the State provides (education, roads, etc) I find to be excellent, so presumably there is less need for ordinary people to use credit. There is little online shopping, a modest but pleasant choice of goods on sale and the shops all close at lunchtime: I wouldn't say it's perfect, but I think the difference is that the French are much, much less materialistic - for example their house is just a place where they sleep and eat, not a temple to the latest fashions of Interior Design - and they're more likely to spend their money on a mountain bike than on ice-cream maker. Britain has become like a hapless hard-worker who wins the lottery, doesn't know how to spend the money, fritters the lot on bling, alienates its friends and suffers immense unhappiness and self-loathing throughout the whole process: kick out brash 'Nu Labour' - it's done nothing but confuse your choices in life.
- Roz, France, 13/08/2009 09:31
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A change of government would do no end to boost our economy. We need a general election.
- Frank, Home Counties, England., 13/08/2009 09:29
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