Monday, 17 August 2009

Can you spot what's missing?

The BBC report that:
"Japan has come out of recession after its economy grew by 0.9% in the April-to-June quarter.

The growth comes after four consecutive quarters of contraction.

Correspondents say that the rise is due to a huge government stimulus package and it is unclear whether the momentum will be sustained.

Recent figures show other economies coming out of recession, including Germany, France and Hong Kong, a sign the global slowdown is easing. "
There is much that is interesting in those four sentences. First that Japan's economy seems to be growing but this may be due to the "huge government stimulus package" and that there are doubts as to whether it is sustainable. Second is that Japan joins Germany, France and Hong Kong coming out of recession.

So what's missing? Well what about relating this news back to the UK? We are still in recession, despite Gordon Brown's claims that the UK was best placed to weather the recession. Also have you ever heard any economist, reported on the BBC, as saying that the UK's "huge government stimulus package" might not be sustainable?

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