The UK could be the Fastest Growing G7 Member Despite Displaying Unsatisfying Numbers

According to the latest figures, the UK is still on track to come out on top as the G7 economy with the fastest growth this year. This says very little though considering that all of these countries are afflicted with socialistic policies that are dragging them down.

According to the latest figures, the UK is still on track to come out on top as the G7 economy with the fastest growth this year. This says very little though considering that all of these countries are afflicted with socialistic policies that are dragging them down.

Big Numbers

The G7 are the wealthiest nations, and represent about 64% of the total net wealth of the world. These figures are positive, in spite of the fact that the GDP in the UK has slowed in the third quarter.  The country saw a rise of 0.7% after seeing 0.9% in the second quarter.

Although the 0.7% rise was in line with most economic forecasts for this quarter, many economic indicators within the country had implied that a weaker housing market combined with slower consumer and manufacturing spending, could lead to lower growth.  Economists have suggested that although growth remains somewhat strong, it probably won’t return to the pace that the UK had seen early in the year.

Despite these concerns, Britain is still expected to be the fastest-growing economy throughout the G7 nations this year, with a GDP increase predicted by the International Monetary Fund of 3.2%.  In comparison, the United States, in second place, is expected to see 2.2% growth.  America’s growth story is unimpressive because wages have not increased since Obama took office.  Americans are not happy with their income and the future and that is why recent political changes have been made.

The Future for UK’s Economy

Services in the UK have continued to be the largest driver of growth this year, followed by production, including manufacturing. In the third quarter, construction has picked up somewhat, following reports that the house-building movement is stronger than it has been since 2007. In comparison to last year, GDP is up by 3%. However, the evidence of solid growth is not all good news, since Britain has been told that it is expected to pay around £1.7 billion into the budget for the European Union by December 1st.

The economist at the ING Financial market, Rob Carnell, suggested that the performance by the UK was very respectable. Chancellor George Osborne, however, may see it as a mixed blessing following the bigger EU bill.

When looked at from a more complete perspective, the economy for the UK is at approximately 3.4% above where it was before the crisis peaked in the first quarter of 2008.  However, despite the government’s ambitions to secure a more balanced level of growth, only the services sector has exceeded the pre-crisis peak. Construction and manufacturing will still have some work to do before they make up for lost ground. The economy is also still below pre-crisis level when it is measured according to per capita numbers. Sounds like America.

England could see higher growth rates according to financial leaders if they lowered their taxes, cut their health care costs, and reduced business regulation.

Unimpressive Results

The average GDP per person within the UK is around 1% lower in real terms than it was before the recession which is one of the reasons why many residents still feel as though there is still a long road ahead before the economic crisis is over. The recession continues…