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Q4 Gdp Results Due Tomorrow (Tuesday)


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GROSS domestic product is sort of like a figure for turnover.

You can have the biggest turnover imaginable....look at the banking sector in 2007...their GDP must have been huge.

However, whatever the GDP of the sector, the banks were generally broke...

The same thing applies to Nations where the news channels concentrate solely on this figure...looking at the NETT domestic product wont be good.

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Now that GDP no longer correlates with either tax revenues or living standards, I'm not really sure why the media are getting so excited about it. Might as well be the transit of Deimos by Phobos for all the difference this makes.

One theory is that journalists don't actually know anything about economics, but they can understand a system in which a big number is better than a small number so decide to report that instead of doing hard things like investigating housing sizes, working hours, commuting times, job security, stress etc.

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As an aside, from the BBC piece:

But industrial production fell slightly from 0.8% to 0.7%, dragged down by falling North Sea oil and gas output.

Why is North Sea oil and gas output counted as production? Surely, given that there is a finite amount of gas and oil under the sea, it should be called exploitation and not count towards GDP.

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0.7% and slowing. Ashen faces at Tory HQ. :lol:

031114.gif

It has been remarkably consistent since Q2........+0.7%, +0.8%,+0.7% or 3% annualised. Adding to the 0.3% in Q1 gives real growth in 2013 of 2.5%. I do not understand why annual GDP growth is measured on a four quarter moving average, because the 1.9% official figures are distorted by the slow growth in 2012.

More excuses for the MPC not to raise rates because growth is accelerating far faster than the annual smoothed GDP figures suggest.

Edit. These figures are still disappointing zugwang so your point is valid, remember some (me included) were expecting 1.0%. On the other hand they do seem to have been revising upward retrospectively lately.

Edited by crashmonitor
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Well if George had eliminated the deficit there would be £100bn less turnover or GDP so how much does the new debt of £100bn contribute to GDP growth ... all of it and then some. So the real value creation in UK is much less than stated and the debt level is soaring. GDP is such IMHO a false indicator as all you need to increase it is more government spending (and the consequential increase in debt and debt servicing costs) but and increase in GDP is greeted with outbursts of joy.

You need to tell that to Ed Balls too. GDP is everything to him, '' investing'' in the future is all about debt as far as he is concerned. Remember the **** is proud of his spending spree.

Edited by crashmonitor
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from the 'orses mouth:

http://www.barclays.co.uk/Businessmanagement/Keepingontopofyourcashflow/P1242559779835

"It's worth remembering the old business saying: turnover is vanity, profit is sanity, but cash is reality.By Steve Priddy, Director - Technical Policy & Research, ACCA"

tongue.gif to Is-born ( with a silver spoon in his mouth ).

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