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Economists have been pondering and discussing when the major economies of the world will start to recover. There is a second discussion which refers to how sustainable these recoveries are going to be as well. In Europe, there have been a variety of tactics employed to aid recovery with mostly limited success.
The UK however seems to be doing comparatively well, it’s certainly growing at a faster rate than most of the other developed countries including those in the European Union. This July it is expected that most of the recession damage will have been repaired specifically due to income and GDP. Of course this still means that the country will have lost out on all the lost growth over the last 5 years.
As in other European countries, unemployment still remains high and for those in work – their real income has been on a downward spiral for some time. This is one of the worries of most of the recoveries, there is no substantial ‘feel good’ factor or increase in spending within the domestic markets to fuel the continued growth,
Whatever policies both the UK and European Governments implement they are still very much affected by what happens to the US economy as well. This was where the crash started, the sub-prime loans scandals within the housing sector. It could be argued that this is where the UK recovery started too, with the Federal Reserve injecting huge amounts of cash into the US economy and slashing interest rates to a marginal level.
Europe apart from Germany and the UK is still showing little signs of a complete recovery, inevitably people are pointing the finger at the single European currency. Germany has always benefited most from the Euro, simply because it has an efficient economy and the Euro’s level has helped greatly with it’s export markets. German goods and services would be much more expensive if they were still using the Deutschmark, whereas less efficient economies like Spain and Greece have been at a significant disadvantage.
Also Britain has much more fiscal leeway because it still retains it’s own currency, allowing the country much more flexibility in attempting to implement recovery and economic solutions like injecting more cash into the economy. The problems with the Eurozone have also hurt the UK recovery, simply because it is the country’s largest export market by a country mile.
Some of the best coverage of the economic situation can be found on the BBC website, especially the news, and shows like Newsnight which can be accessed on the iPlayer. You do need to be based in the UK to access these, although you can also view by using a British IP address to fool the web server.
There is also a lot of intelligent and unbiased economic journalism on the German media but of course, you’ll need to understand the language to enjoy this. There’s a similar process here for accessing German sites.