Think tank boss, Jonathan Portes – who resigned recently as chief economist of the coalition’s cabinet office – says a longer deficit reduction period “is not only feasible, but sensible and prudent”.
Britain is growing at the weakest rate of competitor nations. Only Japan in the G7 and Portugal in the EU are growing more slowly.
The UK is less well-positioned than France or Germany to take advantage of two key changes to the world economy – the effects of technological innovation, and the rise of Brazil, Russia, India and China.
Most of the rest of the North and Midlands suffer higher than average unemployment rates, adding to a picture of a seriously unbalanced economy.
Today, US 10-year government bond yields traded below a critical 2% yield level, a record low – the west has entered a period of stagnation.
From numbers of involuntary part-time workers to vacancies per jobseeker, the job market is now clearly stagnating.
4.4% inflation makes it unlikely that economic growth will pick up in the second half of the year. Retail sales volumes are likely to remain stagnant.
The new IMF boss, Christine Lagarde, has joined calls for a Plan B. In an FT op ed she says “slamming on the brakes too quickly will hurt the recovery and worsen job prospects”.
Osborne’s statement to parliament on recent economic volatility was pervaded by inaccuracy, complacency and vainglory.
Today’s economic data releases from the Office for National Statistics – on trade and production – show that rebalancing of the UK economy has gone into reverse.
