British GDP Growth, In Context
BBC reported last week that the UK’s economic growth for the fourth quarter of 2006 was 0.8%. That is a very good quarter, as European countries don’t annualize each quarterly result — so the 0.8% would be the equivalent of the US reporting 3.2% (annualized) quarterly GDP growth.
That the best quarter the Brits have had in 2-1/2 years. The US has had several quarters better than 3% during that time, and an overall growth rate of well over 3%.
Compared to much of old Europe, though, the UK is a star, routinely beating out France and Germany in economic growth. Each has struggled in recent years to get above the 2% annual growth threshold, though it appears that 2006 will be somewhat better than that in both countries.
Today’s GDP report for the 4th quarter in the US will be released this morning. While the UK is gushing over 3%, we’ll be only mildly impressed at our number, which is expected to be about the same or slightly better.
