"In a research paper released last month, Christopher Smallwood, chief economic advisor at Barclays Bank, said Britain's economy is on course to become the biggest in Europe within 20 years, overtaking that of Germany.
Figures (pdf) released in July showed that the British economy roared ahead at the fastest annual growth rate for almost four years in the second quarter of 2004, driven by a recovery in industry.
Britain's gross domestic product increased by 3.7 per cent in the three months to June from the same period of the previous year, the strongest pace since the third quarter of 2000.
The figure compared with year-on-year growth of 3.4 per cent recorded in the first quarter of this year.
Unlike some of its main trading partners, the British economy skirted recession during the recent economic downturn and analysts said the latest data provided further evidence that a recovery is well on track.
"The UK is running full steam ahead," said Martin McMahon, economist at independent forecasters Lombard Street Research.
Growth was driven notably by increased activity in factories, with production output showing quarterly growth of 0.9 per cent, the strongest pace since the third quarter of 1999. Services output continued to grow at the same rate as in the first quarter.
And according to figures released earlier in July, the UK attracted the most foreign investment in Europe last year, when inward investment rose by 14 per cent. Investment and expansion projects by overseas companies created more than 25,000 jobs in 2003/4, with the number of projects rising from 709 to 811.
Almost one third of the projects were in manufacturing. Other sectors with growing investment included IT, software, electronics and biotechnology/pharmaceuticals.
The UK economy grew continuously throughout the global turndown that began in 2001, while many of the world's major economies experienced recession. The UK is now experiencing the longest period of sustained low inflation for over thirty years and unemployment is the lowest of the G7 major industrialised economies.
Projections from the 2004 Budget show that:
the economy is expected to grow by 3 to 3˝ per cent in both 2004 and 2005, as forecast in last year's Budget and Pre-Budget Report;
inflation is set to remain low and close to the Government's target; and
the public finances remain sound and the Government is on track to meet its fiscal rules, borrowing is $68.25 billion (Ł37.5 billion) in 2003-04 and is set to fall, and in 2003 debt was the lowest of any of the G7 major industrialised economies."
I 'd say that means that in short we're doing OK.
How Beetle can say that Maggie was a great Prime minister escapes me. Squandered Oil revenue,on payiong benefit to over 3 million unemployed, totaly decimated manufacturing industry. destroyed Coal industry, and a growth in the F**k you mate I'm ok culture.
Oh yeah she was a dream. (dream *****)
On the downside the stupid thing this govt did was to get us involved in Iraq!
