Friday, May 13, 2011
Investing in unproductive assets causes poor economic performance
Germany grew by 1.5% and France by 1% in the first quarter â€“ compared to Britain's 0.5% Growth in the German and French economies has surged thanks to strong business investment and consumer spending, in the latest sign that the UK is failing to keep pace with other developed countries. Germany, Europe's largest economy, grew by 1.5% in the first three months of the year, smashing all analysts' forecasts, while France, Europe's second-biggest economy, expanded by 1%, also better than expected. This compares with UK growth of just 0.5%, following a drop of the same size in the fourth quarter of 2010, which prompted a warning from government statisticians that underlying growth was broadly flat.