Britain, although coming out from the longest recession ever, did not rise as much as was suspected, gaining only a mere .01% instead of the projected .04%. Luckily, this is only the first of three readings by the ONS, so future readings may be more positive. Only time will tell. Sadly, if this reading proves correct, it may keep the country in recession because it was so low.
Britain is the last of the power countries to pick itself out of the depression that has hit the globe of late. The US, France, Germany, Japan and China were all a quarter ahead.
It is likely that the next election will affect the GDP, but unclear whether it will in a negative or positive way. What is abundantly clear is that the British government is going to have to work very hard to keep it's country afloat. The only parts of the economy which helped contribute to this minute rise are the retail and the motor sections, and the government has been heavily propping them up.
Recently, the pound had fallen, and it is only worth about $1.60 to one pound, instead of it's approximate 2 pounds per dollar rule of old. The euro has suffered as well. Britain had faced six straight quarters of a falling economy. Because the definition of "recession" only calls for two straight quarters of negative growth, it would appear that Britain has been undergoing a triple-depression. Bummer.
However, in this new wash of hope, over-optimism (the Treasury is claiming an imminent 3.6% raise) threatens to crush the little growth they have had. Projecting too high an increase screws mightily with mortgages and jobs and could even threaten to kill the recovery! Their main concern is debt reduction.
que lastima! :(
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