Gross national product (GDP) neither increased nor decreased in July, compared to the previous month. Economists had expected growth of 0.1 percent, according to a survey by Pantheon Macroeconomics.
The figures come after the economy recovered from a recession towards the end of last year. GDP grew by 0.6 per cent between April and June.
– The economy had zero growth for the second month in a row, but longer-term growth in the service industries means that there is growth over the last three months combined, says ONS’ director of economic statistics Liz McKeown.
Growth in the service industries is offset by a decline in production and the construction industry, writes Reuters.
The new Labor government has put economic growth at the top of the priority list.
– I have no illusions about the scale of the challenge we face, and I want to be honest and say to the British people that the change will not happen overnight, says Finance Minister Rachel Reeves about the figures.
The British economy has grown slowly since the start of the corona pandemic, by just 2.3 percent between the last quarter of 2019 and the first quarter of this year.
Prime Minister Keir Starmer said during the election campaign that he wanted annual growth in the economy of 2.5 percent – a growth rate that Britain has rarely seen since before the financial crisis in 2008.
#movement #economy
2024-09-11 15:47:27
Italy GDP growth 2024
Table of Contents
Economic Stagnation: A Temporary Blip or a Persistent Reality?
The recent news that the Gross National Product (GDP) neither increased nor decreased in July, compared to the previous month, has sparked concerns about economic stagnation. Economists had expected a growth of 0.1 percent, according to a survey by Pantheon Macroeconomics. However, is this a temporary blip or a sign of a more persistent economic stagnation?
Recovery from Recession
The economy had recovered from a recession towards the end of last year, with GDP growing by 0.6 percent between April and June [[1]]. This growth was driven by the service industries, which offset declines in production and the construction industry, as reported by Reuters. The Office for National Statistics (ONS) director of economic statistics, Liz McKeown, noted that while the economy had zero growth for the second month in a row, longer-term growth in the service industries meant that there was still growth over the last three months combined [[1]].
Economic Stagnation in Europe
However, Europe’s economic stagnation is no longer a risk but a reality that needs to be urgently tackled, according to a recent article in Le Monde [[2]]. The European Union’s economy has been experiencing a prolonged period of stagnation, with growth rates remaining sluggish. The article warns that the point of no return is fast approaching and that urgent action is needed to address the issue.
Optimistic Outlook
On the other hand, Joel Mokyr, an economist, is optimistic about the future of economic growth, citing the increased development of science and technology as a driving force for growth [[1]]. He does not see economic growth slowing down anytime soon.
Gradual Expansion Amid High Geopolitical Risks
The European Commission’s Spring 2024 Economic Forecast paints a more nuanced picture, with a gradual expansion expected amid high geopolitical risks [[3]]. The EU economy staged a comeback at the start of the year, following a prolonged period of stagnation, with a growth rate of 0.3 percent.
Prioritizing Economic Growth
The new Labor government has put economic growth at the top of its priority list, recognizing the need to address the stagnation and ensure sustainable growth.
Conclusion
while the recent news on GDP growth may be concerning, it is unclear whether this is a temporary blip or a sign of a more persistent economic stagnation. The European Union’s economy is certainly facing challenges, but there are also signs of recovery and growth in certain sectors. As Joel Mokyr notes, the increased development of science and technology holds promise for future growth. The prioritization of economic growth by governments is crucial in addressing stagnation and ensuring sustainable growth.
Keywords: Economic stagnation, GDP growth, recession, service industries, production, construction industry, European Union, science and technology, economic growth, Labor government.
IMF World Economic Outlook 2024
Economic Stagnation: A Temporary Blip or a Persistent Reality?
The recent news that the Gross National Product (GDP) neither increased nor decreased in July, compared to the previous month, has sparked concerns about economic stagnation. Economists had expected a growth of 0.1 percent, according to a survey by Pantheon Macroeconomics. However, is this a temporary blip or a sign of a more persistent economic stagnation?
Recovery from Recession
The economy had recovered from a recession towards the end of last year, with GDP growing by 0.6 percent between April and June [[1]]. This growth was driven by the service industries, which offset declines in production and the construction industry, as reported by Reuters. The Office for National Statistics (ONS) director of economic statistics, Liz McKeown, noted that while the economy had zero growth for the second month in a row, longer-term growth in the service industries meant that there was still growth over the last three months combined [[1]].
Economic Stagnation in Europe
However, Europe’s economic stagnation is no longer a risk but a reality that needs to be urgently tackled, according to a recent article in Le Monde [[2]]. The European Union’s economy has been experiencing a prolonged period of stagnation, with growth rates remaining sluggish. The article warns that the point of no return is fast approaching and that urgent action is needed to address the issue.
Optimistic Outlook
On the other hand, Joel Mokyr, an economist, is optimistic about the future of economic growth, citing the increased development of science and technology as a driving force for growth [[1]]. He does not see economic growth slowing down anytime soon.
Gradual Expansion Amid High Geopolitical Risks
The European Commission’s Spring 2024 Economic Forecast paints a more nuanced picture, with a gradual expansion expected amid high geopolitical risks [[3]]. The EU economy staged a comeback at the start of the year, following a prolonged period of stagnation, with a growth rate of 0.3 percent.
Prioritizing Economic Growth
The new Labor government has put economic growth at the top of its priority list, recognizing the need to address the stagnation and ensure sustainable growth.
Conclusion
While the recent news on GDP growth may be concerning, it is unclear whether this is a temporary blip or a sign of a more persistent economic stagnation. The European Union’s economy is certainly facing challenges, but there are also signs of recovery and growth in certain sectors. As Joel Mokyr notes, the increased development of science and technology holds promise for future growth.
In the context of global economic growth, it is worth noting that 60% of global economic growth is expected to come from the Asian continent this year, with countries like Malaysia and China projected to expand by more than 4% [[3]]. This highlights the importance of diversified economic growth and the need for policymakers to prioritize sustainable and inclusive growth.
while economic stagnation remains a concern, it is not a foregone conclusion. With the right policies and investments
