Many in the UK media have emphasised the “weak” domestic recovery, particularly drawing a comparison to that of the US. The US GDP figures released in the second quarter of 2011 contained some painful revisions, however.
By looking at nominal GDP, we can ignore the split between inflation and “real” growth, which has not been favourable for the UK . Here’s the comparison of nominal GDP with the US (using the revised figures), taking the second quarter of 2008 as the “peak” month before the downward slide began:
The fall in UK nominal GDP was significantly worse than in the US. Despite this, by the first quarter of 2011, the UK had just managed to inch ahead; a stronger nominal recovery. (Second quarter 2011 UK figures have yet to be published.)