The UK economy is now officially in recession after the release of growth figures this morning which show a 1.5% decline in GDP in the last quarter. This follows a drop in GDP in the previous quarter of 0.6% which means the official definition of two consecutive quarters of negative economic growth has been met.
The 1.5% fall is the largest since 1980 and shows what a perilous state the economy is now in. Gordon Brown refuses to accept that he has put an end to boom and bust but these figures make him look even more foolish when he continues to make claims that this recession is different to previous ones and that he is not to blame. The public won’t buy these feeble excuses. He was very keen to take credit for the ‘unprecedented growth’ as he put it of the UK economy during the first ten years of a Labour Government but is even keener to distance himself from the negative growth in the UK economy. When thousands of people are losing their jobs and their homes each week, it’s embarassing for the PM of this country to give interviews to the press and media and blame the United States and anyone else he can think of at the time and completely try and absolve himself of any blame for the current economic crisis. He should have the decency to be a little honest – but I suppose if he could he wouldn’t be Gordon Brown.
Just to make matters worse, the pound is trading at $1.35 this morning which is the lowest its been for about 25 years.