Whilst this weeks GDP figures confirm the deep-rooted economic problems Britain’s beleagured economy faces following years of overspending and borrowing by the failed Labour Government, they also demonstrate that we are dealing with our debts at home and the debt crisis abroad.
Our coalition Government has made significant progress over the last two years in cutting the deficit by 25%, and businesses have created over 800,000 new jobs. However, given what’s happening in the world we need a relentless focus on the economy and recent announcements on infrastructure and lending show that’s exactly what the Liberal Democrats in Government are doing.
Britain cannot be immune to what’s happening at our doorstep: the events just this week in Spain highlight the ongoing fragility of the Eurozone. Italy, Spain, Portugal and many other European countries are already in recession. And now even Germany’s credit rating has been put into question. What’s more whilst the German economy looks strong, it can no longer be seen in isolation, and whilst the current weaknesses in the other eurozone countries are creating a buoyant export market for Germany in the short term, if the other Eurozone countries succeed in pulling themselves out of the mire the Euro will recover and German exports will reduce. That is when Germany will face the mass unemployment, just as unemployment is falling in other Eurozone countries.
Back, though, to Britain where:
- In the three months to May 181,000 new jobs were created, and since the Coalition took office in 2010 over 843,000 private sector jobs have been created – more than in France, Italy and Spain
- The unemployment rate is lower in the than in the US, France, Italy and the Eurozone overall
- People are facing higher cost of living, but June inflation fell to 2.4% and has more than halved since the peak of over 5% in September
- For the first time in over a decade Britain is exporting more to countries outside the EU than to countries inside the EU
Take into account the fact that the main decline in GDP is in the construction industry, which will be substantially boosted by the various infrastructure improvements the Coalition is implementing, and acutally the figures are nowhere near as bleak as they at first look.
We all knew when the British People made clear that they did not trust any party to run our country alone, and therefore voted for this coalition that times were going to be tough. They still will be, but the light at the end of the tunnel is now clearly visible.