Today’s European GDP figures provide a stark reminder of how weak the UK recovery has become. German GDP is now back above its pre-crisis level, a feat the UK is not forecast to match until 2013.
The graph below vividly illustrates how the UK has fallen into the international slow lane in the past six months. We are now right at the bottom with Portugal and Greece, and behind Spain.
By contrast, in the six months before this (and before Osborne’s measures started to take effect) the UK was near the top of table.
As I said on Wednesday as the Bank of England downgraded it’s 2011 growth forecast, potentially adding another £12-14bn to the deficit, without growth there can be no credible deficit reduction.