A heatwave hits the economy
It’s not just temperatures which have shot up this week.
The Central Statistics Office (CSO) confirmed that the economy, or at least parts of it, is going through a definite heatwave of spectacular growth.
We also learned through the Summer Economic Statement that the Government intends to borrow a lot more money than had been previously thought over the next five years.
So it’s obviously hoping the good weather will last.
The CSO almost doubled how much it believes the economy grew last year in Gross Domestic Product (GDP) terms, from 3.4% to 5.9%.
And it has upgraded its growth figures for the first three months of this year.
The Government, in its Summer Economic Statement, has thrown off its Covid caution of 4.5% growth this year and now thinks it will deliver growth of 8.8% in GDP terms.
But like the shimmering heat rising from sticky tarmac across the country this week, much of this growth is a mirage.
Because GDP captures a…