EDITOR'S LETTERMerryn Somerset Webb
A new kind of normal
Is it over? David Smith, writing in The Sunday Times, thinks it is. The last quarterly rise in GDP has taken us “within a whisker” of our pre-crisis peak, something that suggests we are “waking from the nightmare Britain entered seven years ago”.
Consumer confidence is high. Strong rises in employment are evident. And real pay is rising: in the last three months we have the numbers for, private sector pay rose by 2%. That’s a little more than inflation.
This is all true. Indeed, anyone who came to the MoneyWeek Conference last week will know that we think today’s GDP might be even higher than the statistics suggest – the numbers don’t capture collaborative consumption and aren’t good at capturing the black and grey economies.
However, while the worst of this part of the crisis may be over, that doesn’t mean we are on the way to getting back to anything like what we might have considered normal pre-crisis.
This is a new kind of normal.
• Read the full editor’s letter here: A new kind of normal