City A.M. : My response to July GDP figures

To get our economy back on track, businesses must have confidence to take bold decisions. Disappointing GDP figures, together with the ongoing Eurozone crisis, risk undermining fragile confidence. But gloom that leads to extreme caution is the last thing our economy needs. The latest employment figures are positive (total employment is up 180,000 in the last quarter) and the deficit has already been cut by 25 per cent. Like the vast majority of economic statistics, GDP figures are based on survey data. That is why we shouldn’t get too carried away. Labour may like to play Cassandra and talk down our economic prospects, but the reality is that businesses are sitting on record amounts of cash that could be invested. By making it easier for infrastructure projects to go ahead and improving access to credit, the government is helping get money into the economy. That is the right approach, and the only way out of this economic mess. To see the full discussion in City A.M. please click here