The fact that the UK was still in recession in 3Q is quite shocking. Most surveys have been pointing to a weak recovery. The problem in the UK is that too many households and businesses have relied on credit. The UK was an easy market for foreign banks to do business in. The Icelandic and Irish banks were particularly active and now they’ve gone. The domestic UK banks are generally not in a position to take the slack. Hence, the UK is struggling to get out of recession.
There is a small silver lining as the rest of the world recovering before the UK gives us a chance of reducing our trade deficit and rebalancing our economy. However, it’s going to be a long tough haul. Having boasted about presiding over the longest economic expansion in the history of the UK, it would be nice to think that Gordon Brown might apologise to the nation for presiding over the longest recession this country has ever suffered. I’m not holding my breath, though.
It’s no use GB blathering on about a global recession being the problem. Sure, it’s not helped, but he made it worse by giving the UK a structural public sector deficit before the recession and foisting the financial sector with a disastrous regulatory mess. Nice one Gordon.