GDP hype – why?

A variation of +-0.3% month to month does not deserve the negative press that continually flows across the newsdesks and airwaves.
GDP is an average result of 44000 companies performance. Companies can manipulate these month end statistics(and even quarter end and year end) by bringing forward or pushing back deliveries, closing sales deals etc.The market makers can influence buys and sells. Thus monthly statistics must only be taken as a rough guide and longer time period averages must be used.
The negative press does not help anybody, we must look at growing confidence and encouraging real growth and real industries.
Despite all the talk about the UK already been through 2 recessions you maybe surprised to note that the uk growth rate has averaged at aproximately +0.5% over the last year or so.
This does not mean there is not a problem out there, the issue is where is the problem and how to tackle it.
I believe we as a country must improve our productivity as we are currently underperforming most of G7 members.
We need to eliminate waste from all activities thereby improving performance in everything we all do.
We need government to improve its productivity and reduce its spending.
We must encourage new manufacturing/production businesses to enable us to adsorb the employment changes which will flow from improving productivity and efficiency.

The UK debt mountain that we currently have is costing the country about 3% of GDP in interest payments alone so clearly reducing our debt in an important priority for the government and improvements in growth and reductions in spending all are important objectives, but its not the only priority.

The main message is we have the technology, we have the people we can do it and recover from this difficult period.

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