The news that the UK economy grew by 0.5% in February, lifting the three-month growth rate to 0.6%, is obviously welcome. But these ONS figures should come plastered with health warnings. For a start, monthly GDP data are notoriously volatile, and often revised. A sharp correction is possible in March and especially in April, when … Continue reading Is the UK economy really bouncing back?
Tag: economics
Tumbling energy prices will provide just a little relief from a tariff war
President Trump’s tariff war has already had a large number of consequences – intended or otherwise – for the global economy. But the slump in energy prices is at least one result that we can welcome. On Monday the price of a barrel of Brent fell to US$64, down about 16pc from the average of … Continue reading Tumbling energy prices will provide just a little relief from a tariff war
Is defence spending good for growth?
The right amount to spend on defence should, of course, primarily be a decision based on the benefits to our security. But could more defence spending also be good for growth? The short answer is ‘not necessarily’. The overall impact on the economy will depend on how the additional spending is financed, and on whether … Continue reading Is defence spending good for growth?
No, the Spring Statement was not a ‘return to austerity’
First, the good news. Rachel Reeves’ Spring Statement is unlikely to do any significant harm to business or consumer confidence, and it was largely shrugged off by the financial markets. These days that is something at least to cheer. In particular, the Chancellor wisely resisted the siren calls to relax her fiscal rules to finance … Continue reading No, the Spring Statement was not a ‘return to austerity’
Plain-speaking Economics 