Has the economy grown by just 0.1% in 9 months?
The highly respected National Institute for Economic and Social Research has just released its forecast of GDP growth for the 2nd quarter.
Most observers have revised down their forecast for Q2 growth to 0.3% in recent weeks, today’s evidence suggests it could be even lower.
NIESR are now forecasting growth of just 0.1%.
That would mean growth of 0.1% in 9 months – an absolutely disastrous economic performance.
The chart below (from NIESR) maps the UK’s economic performance over previous recessions, as can be seen the closest parallel to this anemic recovery is the Great Depression.
There is no way the deficit can be reduced if the economy is growing just 0.1% in 9 months.