Across the pond in the U.K., they’re now starting to talk about the possibility of a “triple-dip” recession as the British economy contracted by 0.3 percent in the fourth quarter as shown below from this story at the BBC, what we’d call here in the U.S. a -1.2 percent annualized rate of economic growth (or thereabouts).
The London 2012 Summer Olympics gave the economy only a fleeting boost and, since the Bank of England has outpaced all other major central banks in their money printing efforts as shown in this item from a couple weeks ago, it must be all that government austerity that is holding the Brits back.
According to the BBC report, the Labour Party’s shadow chancellor Ed Balls said “Today’s news confirms what business leaders, retailers and families have known for many months – that depressed confidence and a chronic shortage of demand mean our economy continues to flat line”.
Yes, it’s that pesky problem of “lack of aggregate demand” that seems to be the root of the problem.