Updated: Mon, 12 Nov 2012 15:52:30 GMT | By Cliff D'Arcy, writing for MSN Money
Our economy in pictures: 10 fascinating financial facts

The incredible shrinking economy (our economy is smaller today than it was in 2007)



10 slides that explain the financial truth of Britain today (© Image © MSN)
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  • 10 slides that explain the financial truth of Britain today (© Image © MSN)
  • 10 slides that explain the financial truth of Britain today (© Image © MSN)
  • 10 slides that explain the financial truth of Britain today (© Image © MSN)
  • 10 slides that explain the financial truth of Britain today (© Image © MSN)
  • 10 slides that explain the financial truth of Britain today (© Image © MSN)
  • 10 slides that explain the financial truth of Britain today (© Image © MSN)
  • 10 slides that explain the financial truth of Britain today (© Image © MSN)
  • 10 slides that explain the financial truth of Britain today (© Image © MSN)
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As you can see, the above graph shows the size of the UK economy from 2005 to 2011 (at year-end, adjusted for inflation).

The UK economy peaked in size at £1.47 trillion in 2007 before slumping to £1.4 trillion at the end of 2009. In effect, our economy shrank by about £70 billion - around 5% - in two years, before bouncing back.

Despite modest growth in 2010 and 2011, Britain's economy slipped into a double-dip recession this year. As a result, our economy is smaller today than it was in 2007 and only slightly larger than it was in 2006.

In summary, we've gone back almost six years in time!

53Comments
13/11/2012 09:43
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When will the morons that claim to run the economy realise that without manufacturing we will be a dead duck.

 

Property bubbles and financial services will never fill the gap caused by the Thatcher led crusade to eliminate manufacturing.

 

How many of our Politicians know anything about Science, Engineering or manufacturing?

 

The economies that do well and grow - India, China, Brazil all manufacture.

 

The economise that do badly have bankers and Property bubbles - how hard can it be to work that out!!!!

 

When Cameroon visits India on a Trdae Mission who does he take ..... Kelly Holmes - Do me a favour - nice girl but how can she possibly adequately represent British Engineering.

 

If I were a young Scientist or Engineer today i would be leaving and seeking my future elsewhere.

13/11/2012 13:53
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The way we are heading, the terrorists we keep, the countries we give money to and the unreal salaries that politicians etc we went from Great Britain to just Britain next we will be on the list of 3rd World Countries and why? We lost freedom of speech, we can't stand up for ourselves as we live in fear of being called racists and as for the few million immigrants oh yes they will be coming here because the border is open and we dare not speak out.

If i win the lottery any time soon I am out of this hell hole of a country.

13/11/2012 12:24
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Our country is essentially a business, that's what people need to remember. We need business minded people running it. We don't need to make a profit, just break even. If the MP's got performance related pay you can bet the country would be better run!
13/11/2012 11:38
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what makes things worse is that they go and create post's at £85000 per year(crime and police commissioners), post's that  will pull more money out of our(the people) pockets, and remember, there is one for every police force area, when will this mania for rewarding failure end, because here is proof that it is mostly a government thing e.g. the b.b.c. for another.
13/11/2012 13:56
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PEOPLE NEED TO PROTECT THEM SELVES. GET RID OF YOUR CREDIT CARDS. LOANS AND LIVE WITHIN THERE MEANS. DEBT IS YOUR SLAVE.
13/11/2012 13:49
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Part of the problem is the tax system that allows foreign-owned corporate giants to get away with paying little corporation tax.  Another part is the incredibly rich individuals who get rich on the backs of the low paid - a majority in the UK are paid less than the national average.  Another part is that monopolies - they should be publicl owned utilities like gas, electric, water and the railways - are owned by tax avoiding profit-raking global companies - all their income should be coming into the public purse because we pay for it.  And then there's the banks who our governments would rather bail out than bail out businesses, local authorities, and the NHS.

... but don't get me started ...

13/11/2012 07:59
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all the worst numbers have Gordon Brown as a common factor
13/11/2012 12:09
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Frank, no it doesn't. if you have 3k in bank you can't sign-on, (cept first 6 months) so there are loads not working but not signing. also big rise in part-time employment, which hides truth. But where Labour gov used to hide unemployed by putting them into work programs, that has now ended as work program attendees now have to sign on. true unemployed numbers prob about double the shown stats. but fact that there are more people with jobs is due to the many immigrants working here---especially Euro ones. Cant wait for the turks to join---that will be another million landing in the first 3 months
13/11/2012 11:52
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Does these figures actually reflect those who are truly in work. I would like to know how many have signed off as they can not be bothered being patronised for £64 per week assuming they have not found away of depriving you of this. I am not sure if 16 hours a week really counts as full time employment but it is enough to have you signed off by the bearcats, just more statistics and lies.
13/11/2012 13:16
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i stopped voteing after tony blair and brown destroyed the labour party ...ok you might say i shouldnt have an opinion then ...maybe you are right ..? but my point for not voteing anymore was this ...well before the world slump ...well before ..every x4/5 yrs the election would come around ...and thingswere worse than the election before ...nothing gets better ...only worse ...and somebody tell me the diference between any of them red blue yellow ...none of them make things any better ...i think personally the british people are sick too the back/teeth of the lot of them ...most of my friends dont even turn out too vote anymore ...for me theyv had us all for mugs far too long now and that summed it up with the expense scandel ...and its rumoured they are still at it ...we are all in this together ...haaaa apart from mps bank managers and failed bbc bosses ...just got a big pay/out for being a failure etc ...a law for jo/public and they stll carry on picking all the cream up the people in power ...
13/11/2012 12:24
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Not just the housing market. Low supply of property is propping up prices for the moment. But if we want the wider economy to benefit eg electricians, plumbers, builders, kitchen manufacturers, floor/carpet specialist....anyone in fact connected to the housing industry then we must make it easier and cheaper for people to MOVE home. 1 in 6 can't because they can't get insurance due to risk of flooding. Now the Govt has made it easier for people to EXTEND their home but this will merely encourage homeowners to stay put. A conservatory might provide a limited workforce and a double glazing salesman with some work for a few months but people often only renovate completetly when they move home not when they extend. The Govy should target 2nd home owners if they want to raise cash. Some people have portfolios of 10-100 homes.....as buy to lets.....target them and they will be forced to sell. Prices may drop but younger people will get a chance of owning their own home rather than renting from a greedy landlord.
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rip van winky your so wrong,yes blairs regime(which i detested) was hardly communist,since when did being centre right become akin to communism?????The banks played a huge part in the collapse of the economy or did you forget that ? also Thatcher(spit) and her idiotic capitalist dreams for the country broke it in two,a problem which has never gone away,and successive governmnets have been to weak to combat it.,whilst you talk of labours champagne socialism,which was a kick in the teeth for true labour supporters,there isnt much difference with that of the tories champagne capitalism.
13/11/2012 12:14
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Overly reliant on financial services is the centre of the evil here. Brown is responsible for that and was possibly one of the worst men to be in the driving seat at the time. Remember this was a man who admitted he hated math at school and sold a shed load of our nations gold reserves while the prices were at their lowest just before they shot up in value.
We need to get back to grassroots to encourage growth, which is understandably why the tory government is investing in the sciences. However this is a little bit of a long shot as investing in science doesnt garantee results.

Another issue is making manufacturing in this country attractive. Pharmaceuticals is something which contributes a lot to this country's success, but also the people at the top are dodging the taxes they should be paying, short changing the treasury and forcing borrowing to pay for initiatives which are not always necessary for the good of the nation but endorsed by governments. 50% of individuals graduating in the UK (a Blair dream) is one. Their is no point in creating graduates for top jobs unless the jobs exist and also the number of my freinds who have good quality degreees but work in sectors completely un-related and under-paid is starting to become a norm.

The truth of the matter is a dramatic change is needed,

and not just in this country but world wide.

Every reaction has an equal and opposite reaction, and as tentions rise so does the response to it. It doesnt look good...

13/11/2012 11:21
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Some people don't mention that Unions are not entirely blame free in all of this. It goes back years/decades. Remember the 70's when Unions ran the country. I'd rather have the situation we have now (albeit not a good one) that back then with power cuts, strikes every week, 26% inflation, winter of discontent, fuel shortages, having to go to the IMF cap in hand. The list is almost limitless.

 

People blame Maggie Thatcher but something had to be done about Unions and socialism.

 

If not, we would more than likely be living in a State run society, a la France, where they pay massive taxes, even more that here, and thats saying something.

 

Beware socialism and Unions.

Last week I saw a long coal train bringing in imported coal to a foreign owned power station.

It stinks. We used to have a coal industry and a car insustry, now gone.

13/11/2012 13:48
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The world economies is based on debt. Without  it would fall apart. If every body in the UK paid off there debts theUK economic structure would fall apart.The us economic structure is falling apart. 20 trillion in debt  and growing by 1 1/2 trillion  every year. They are on the verge of cal laps. all they can do is keep throwing money at the economy. Inflating the biggest bubble ever which will burst. they will go bust and everyone in the world will feel it. The powerful money men of the world are in  control. The world is in a mess they cannot get out of. The money system has to be changed. This is the worlds worst financial crisis ever. our children will pay for years to come. greed of others are at the root cause. Instead of throwing all that money at the banks. they should have given it to to us to spend.



13/11/2012 13:47
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Now we have a government that lies about growth figures by including figures currently that were gained from figures made years ago. Look at the inflation figures now, through the roof. Nowhere near targets and heading closer to 3% than the 2% target. A target frankly unacheivable with current economic policy. Less spending money with higher fuel and food prices, buoyed by university fee's. Inflation means the Bank of England cannot help by printing money without compounding the problem. The 1% with all the money now want interest rates up so the money they're sitting on will be worth more. Anyone with loans, including mortgages and credit cards, could face bankruptcy in this climate. This means sqeezing the victims of these already dire conditions even further thus eradicating most of the middle class and all the other people who need the help most. The government economic policy is not to have one. 
13/11/2012 15:47
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im ex/labour ....blair brown ...ruined us all ....ask do they care ...correct not a chance ....i found out now browns got a cusher number some over seas job for the boys ....? blair well enough said about him ...how much money does that man want ?? shafted ...and rubbing our noses in it as well ...unbelievable ...but true x
13/11/2012 20:14
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when are people going to wake up to this world wide political game..the vast amount of governments in our so called democrasis are just puppets, just as we are to the multi rich and powerfull.  

13/11/2012 19:57
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i find my self at the very sharp end of this down turn,i worked for a company that owes me a lot of money  and they have now become unobtainable inevery way, and have left me in debt
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Time for power and economic changes! 
Asia and Latin America are getting the grip and growing as fast as never seen before!
Im now living in Brazil and can surely say this corner of the planet are knowing how to get power, influence and stability. Thanks to their traumatic past of high inflations, bad governants and lack of money!
Anyway! Very happy down here! Nice people! Great Weather and brilliant future for the whole latin america! Viva!!
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