On the left are the figures for GDP. On the right are the figures for contributions to growth. Conveniently the GDP data go back to September 2007 so there are a couple of things that are worth pointing out.
First we should note the recession we never had which is quite prominent. You will see a major drop in GDP that somehow escaped being recorded as two consecutive quarters of falling output. Same time as the unemployment rate went from the 3.9% recorded at the time to 5.8%. Didn’t have a recession? It was the recession we didn’t have to have, had it anyway but called it something else.
Then a mint of government spending later we have a massive debt as well as low growth and rising unemployment. GDP growth for the quarter was 0.6% and for the year less than two and a half. And if you’d like to see the evidence of public spending, look at the figures for GFCF-Priv and GFCF-Pub, that is private investment and public investment. Private is falling. Public is rising with a full year reduction in investment in both sectors together of negative 2.0%.
More evidence to ignore that shows public spending does not get you growth, employment or higher living standards.
These are very revealing figures. I only hope our new government understands that growth and prosperity can and will only come from the private sector acting on its own initiative.