UK: the method to underperform peers
- GDP growth more than halved again in October to 0.4% m-o-m, despite output still being almost 8% below its pre-Covid level. The ongoing upheaval of aggressively evolving restrictions killed the recovery even before the renewed destruction of lockdown 2.- The UK is still performing especially poorly relative to its peers. However, most of the real output shortfall is arguably related to the measurement of public services. Counting wasteful nominal spending risks overstating the future tax potential, though.
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