Why is the UK still in recession?
The latest growth figures from the USA tell us that it is out of recession; why, then, is the UK the only major economy still in recession?
Firstly, although the USA is out of technical recession, I don’t think anyone would describe its economy as healthy. Recovering, perhaps, but not healthy, and the same goes for the other major economies.
Secondly, this recession centred around banking and finance, with knock-on effects for the various professions that make their living in and around those activities. Financial services in 2005 accounted for 8% of GDP and financial services another 4% (source). I’ll find detailed figures for other countries later, but our excessive dependence on the City cost us dearly when the City went down the tubes.
xD.
