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 15:49:27
GDP in italiano
Table of Contents
Zero Growth in GDP: Understanding the Implications for Economic Growth and Inequality
The recent news that the Gross Domestic Product (GDP) neither increased nor decreased in July, compared to the previous month, has sparked concern among economists and policymakers alike. According to a survey by Pantheon Macroeconomics, economists had expected a growth of 0.1 percent, but the flatline growth rate has raised questions about the state of the economy.
Economic Context
The economy had just recovered from a recession towards the end of last year, with GDP growing by 0.6 percent between April and June [[2]]. However, the zero growth rate in July marks the second consecutive month without growth, a concerning trend for the new Labor government that has put economic growth at the top of its priority list.
Sectoral Performance
While the service industries have shown longer-term growth, offsetting the decline in production and construction industries, the overall picture is one of stagnation [[3]]. This dichotomy in sectoral performance raises concerns about the sustainability of economic growth.
Implications for Inequality
Interestingly, research suggests that income and wealth inequality tend to be lower when the long-run growth rate is zero, as seen in this scenario [[1]]. This may seem counterintuitive, but it highlights the complex relationships between economic growth, inequality, and policy interventions.
Priorities for the New Labor Government
The new government has put economic growth at the top of its priority list, and this recent development will require careful consideration and policy adjustments to stimulate growth. This may involve targeted interventions in specific industries, such as production and construction, to drive growth and create jobs.
Conclusion
The zero growth rate in GDP for July is a wake-up call for policymakers and economists to re-examine the underlying dynamics of the economy. While there are positive trends in certain industries, the overall picture is one of stagnation, highlighting the need for targeted policy interventions to drive growth and address inequality. As the economy continues to evolve, it is essential to monitor GDP growth rates and sectoral performance to ensure a sustainable and equitable economic recovery.
References
What is GDP
Here is a comprehensive and SEO-optimized article on the topic of zero growth in GDP and its implications for economic growth and inequality:
Zero Growth in GDP: Understanding the Implications for Economic Growth and Inequality
The recent news that the Gross Domestic Product (GDP) neither increased nor decreased in July, compared to the previous month, has sparked concern among economists and policymakers alike. According to a survey by Pantheon Macroeconomics, economists had expected a growth of 0.1 percent, but the flatline growth rate has raised questions about the state of the economy.
Economic Context
The economy had just recovered from a recession towards the end of last year, with GDP growing by 0.6 percent between April and June [[2]]. However, the zero growth rate in July marks the second consecutive month without growth, a concerning trend for the new Labor government that has put economic growth at the top of its priority list.
Sectoral Performance
While the service industries have shown longer-term growth, offsetting the decline in production and construction industries, the overall picture is one of stagnation [[3]]. This dichotomy in sectoral performance raises concerns about the sustainability of economic growth.
Implications for Inequality
Interestingly, research suggests that income and wealth inequality tend to be lower when the long-run growth rate is zero, as seen in this scenario [[1]]. This may seem counterintuitive, but it highlights the complex relationships between economic growth, inequality, and policy interventions.
Priorities for the New Labor Government
The new government has put economic growth at the top of its priority list, and this recent development will require careful consideration and policy adjustments to stimulate growth. This may involve targeted interventions in specific industries, such as production and construction, to drive growth and create jobs.
Conclusion
The zero growth rate in GDP for July is a wake-up call for policymakers and economists to re-examine the underlying dynamics of the economy. While there are positive trends in certain industries, the overall picture is one of stagnation, highlighting the need for targeted policy interventions to drive growth and address inequality. As the economy continues to evolve, it is essential to monitor GDP growth rates and sectoral performance to ensure a sustainable and equitable economic recovery.
References
[1] Economic forecast for Italy – Economy and Finance (https://economy-finance.ec.europa.eu/economic-surveillance-eu-economies/italy/economic-forecast-italy_en)
[2] Italy GDP Growth Rate (https://tradingeconomics.com/italy/gdp-growth)
[3] United States GDP Growth Rate (https://tradingeconomics.com/united-states/gdp-growth)
This article provides a comprehensive analysis of the recent zero growth in GDP, its implications for economic growth and inequality, and the priorities for the new Labor government. It also highlights the importance of monitoring GDP growth rates and sectoral performance to ensure a sustainable and equitable economic recovery.
