The illusion of economic recovery

GDP per head is still 7 per cent below its pre-recession peak. That’s one of the sober reminders of the weakness of our recovery in a new ONS report, released as part of its National Well-being project. In fact, GDP per head fell by 7 per cent from 2008 Q1 to the recession’s trough in 2009 Q2 — and has recovered by 0.0 per cent since. That is, the 2.4 per cent recovery in GDP up to 2012 Q2 (which still leaves us 4.1 per cent below our pre-recession level) has not been enough to outweigh population growth. The GDP index has risen, but only thanks to Britain’s ever-rising headcount. When it comes to GDP per capita, there has literally been no recovery at all.

And it’s even worse if you look at net national income (which includes income from abroad, but excludes income that’s gone abroad and capital depreciation). That fell by 11.2