The Great Debate UK

Why is the UK still in recession when the U.S. isn’t?


Recent U.S.¬† gross domestic product data show the world’s biggest economy emerged from recession in the third quarter, while in the UK data show that in the same period Britain’s economy contracted.

British economist and author John Kay theorizes that Britain is mired in its worst recession on record in part because government support has not been evenly distributed across sectors.

“We’ve poured money into the financial sector — by and large the financial sector in Britain is doing OK,” he said.¬† “But very little of that is getting through to small and medium-size businesses out there in the rest of the economy.”

from The Great Debate:

The ugly attraction of fast shrinking Japan

James Saft Great Debate -- James Saft is a Reuters columnist. The opinions expressed are his own --

Sure, seeing your economy shrink at a 15 percent annual clip is depressing, quite literally, but if you believe in even a tepid global economic recovery in the second half, then Japan is actually attractive.

There is no way to sugar coat the first quarter Japanese gross domestic product figures released on Wednesday: they are breathtakingly bad viewed from virtually any angle.