Sharp fall in global foreign direct investment last year

Global foreign direct investment (FDI) inflows declined by 18% in 2012 to a level which was close to the trough reached in 2009, according to the Global Investment Trends Monitor just published by UNCTAD. The Report puts this down to the uncertainty which has been caused by the weakening macroeconomic environment, with falls being registered for global growth in GDP, … Continue reading

Posted by Nigel Tree | Leave a comment

Some good news at last as GDP rises

There was a strong upturn in the UK economy in the third quarter of this year, as GDP grew by 1% from the second quarter level. This was following three consecutive quarters of contraction when the economy slipped back into recession and was the strongest quarterly growth since 2007 according to the figures released this morning by the Office for … Continue reading

Posted by Nigel Tree | Leave a comment

UK trade deficit in August – 2nd highest on record

The UK’s deficit on trade in goods and services increased to £4.2bn in August, from £1.7bn in July, according to the Office for National Statistics. This was the second highest figure on record for the total trade deficit. Our trade in goods deficit also widened to £9.8bn from £7.3bn in July. This was due to a drop in exports and … Continue reading

Posted by Nigel Tree | Leave a comment

If only a double-dip was an ice cream

In the last few minutes it has just been announced that the UK is officially back in recession. Gross Domestic Product fell by 0.2% in the first quarter of this year, which follows on from a decline of 0.3% in the fourth quarter of last year. The official definition of a recession is two consecutive quarters of negative growth. And, … Continue reading

Posted by Nigel Tree | Leave a comment

It’s only business investment which can save the economy

This is the substance of an economic forecast just released by the Ernst & Young ITEM Club. Whilst acknowledging that the UK may have been saved from a double dip recession by a ‘loose’ monetary policy, the ITEM Club believes that UK GDP growth will be a dismal 0.4% this year, before rising to 1.5% in 2013 and 2.6% in … Continue reading

Posted by Nigel Tree | Leave a comment

UK growth revised downwards for last year

UK gross domestic product (GDP) fell by 0.3% in the fourth quarter of 2011, according to the Office for National Statistics (ONS). This follows two previous estimates of – 0.2% for the quarter. This had the effect of reducing total growth in 2011 down to 0.7% from the 0.8% earlier estimate. In the last quarter of 2011 output of the … Continue reading

Posted by Nigel Tree | Leave a comment

Internet accounts for higher percentage of GDP in UK of all major economies

In 2010 the internet economy in the UK accounted for 8.3% of GDP, followed by South Korea with 7.3%, China with 5.5% and only 4.7% in the US, according to a study by the Boston Consulting Group (BCG). In the UK the value of the internet economy was £121bn in 2010, which makes it larger than the healthcare, construction or … Continue reading

Posted by Nigel Tree | Leave a comment

OECD GDP growth slows sharply to 0.1% in the fourth quarter of 2011

Quarterly gross domestic product (GDP) growth in the OECD area decelerated sharply to 0.1% in the fourth quarter of 2011, against 0.6% in the third quarter, according to provisional estimates released this morning by the OECD. The OECD total masks diverging patterns however. In the United States, GDP growth accelerated to 0.7% in the fourth quarter of 2011, compared with … Continue reading

Posted by Nigel Tree | Leave a comment

Prospects for growth worsen

The Confederation of British Industry (CBI) has slashed its forecasts for growth in the UK. It had previously predicted that we would see growth of 1.3% this year and 2.2% in 2012, but these have now been reduced to only 0.9% this year and 1.2% next year. The CBI does not believe that we will slip back into recession this … Continue reading

Posted by Nigel Tree | Leave a comment

Has Quantitative Easing actually worked?

 The Bank of England introduced the so-called scheme of Quantitative Easing (QE) in March 2009 and it continued until January 2010. This was an attempt to inject money directly into the economy by buying financial assets on the open market, largely government and corporate bonds. It was introduced because the price of money (Bank Rate) was not working sufficiently to … Continue reading

Posted by Nigel Tree | Leave a comment