Thursday, July 27, 2017
Figures out this week show a continuing sickly GDP growth. The economy grew by 0.2% in the first quarter. We learnt earlier this week that growth was 0.3% in the second quarter. It's better than a contraction but it is still poor. The UK has gone from having the highest growth rate in the G7 under the Coalition to having among the poorest under the Conservatives. The IMF have also downgraded UK growth estimates for the year from 2% to 1.7%. I would have thought that was a bit optimistic given the sickly figures for the first half of the year. An announcement that the UK will stay in the Single Market and Customs Union would help reassure the business and help restore confidence. Sadly, with both the Conservatives and the Corbynistas pressing an almost identical Hard Brexit, such an announcement is unlikely to be making an appearance soon.