The recession in the UK is even worse than first reported.
Figure 1: UK annualized q/q GDP growth (chained 2008), calculated as log differences. Dashed line at 2010Q2 (new coalition government). Source: UK ONS.
2012Q1 growth is revised down from -0.1% (quarterly rate) to -0.3%.
As I noted earlier , this should put (yet another) nail in the JEC-Republican proposition that cutting spending will necessarily result in an output boom. If it doesn’t happen in a relatively open, small economy, what would happen in a large, less open economy, stuck at the zero interest bound?