Hardman & Co Insight | Economic growth: Cry me a river
The UK press and politicians remain fixated on growth, a theme central to the Labour Government’s agenda since taking office 12 months ago. Its 2024 manifesto, "Labour Party Manifesto 2024: Our plan to change Britain", dedicated an entire chapter to “Kickstart economic growth”, signalling its status as the Government’s top priority. In this article, we explore why growth matters, its potential downsides, and how it is understood by both politicians and markets. We also examine whether aggregate GDP is the right metric to focus on, the common error of confusing spending with investment, the key elements required for sustainable growth, the UK’s recent performance, and what can realistically be done to drive growth forward.
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