Today’s GDP numbers should not be underestimated. A 20% fall is the largest ever recorded and while June offered some hope this crisis will take years, not months to clear up.
What is most interesting about recessions is what the GDP measurements fail to measure.
It’s the big job that was shelved, the business project that wasn’t financed, the pay rise and bonus never handed out as the bunker, survival mentality takes over.
The economy doesn’t grow and neither does the people working in it.
Even before the coronavirus crisis hit, the UK economy had some deep underlying problems.
For starters, the country is one of the most unproductive in the world. Years of underinvesting and cost cutting have left companies behind rivals in the US and much of the G7.
While under-trained managers and senior level executives have left the country with leaders who have no idea how to get the best out of their staff.
So once this is all over where is the growth going to come from?
The millennial generation will probably end up sharing more in common with its grandfathers than fathers.
Starting small efficient businesses that grow over decades.
