The UK economy is rebounding at the fastest rate in Europe, and faster even than the United States: that is the general tone of reporting of today’s GDP figures, which show that the UK economy expanded by 4.8 per cent in the second quarter of 2021. That is compared with 0.9 per cent in France, 1.5 per cent in Germany and 1.6 per cent in the US.
But hang on, dig a little deeper and there is something a little odd going on with the figures. Compare nominal and real changes in GDP during the second quarter and it produces the following:
UK, nominal growth in second quarter: +3.6 per cent; real growth in second quarter: +4.8 per cent
France, nominal growth in second quarter: +1.0 per cent; real growth in second quarter: +0.9 per cent
What it means is that the rebound of the UK’s economy is a bit less impressive than it at first seems
Germany, nominal growth in second quarter: +1.4
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