In the UK, the economy has largely opened again. The UK budget deficit was more than 14 per cent of UK GDP last year. This would be higher “because the British government has loaned too much to companies and will not pay it back in full,” says macroeconomist and BNR commentator Kees de Kort.
The British are opening their doors again now, but guess what? They expect the budget deficit to again reach 10 percent of GDP. And the money is still free, the economy has been abandoned, and the vaccinations have been completed. I don’t think there is much confidence that the economy can stand on its own two feet. There is no confidence that the economy itself is gaining momentum. You can also apply this story to other countries. Also in the Netherlands, the budget deficit is expected to be around 5 or 6 percent.
“So what’s wrong with the economy?” asks de Corte. We swam in the trap: go ahead and hope it all works out. It turns out that going for time means the problems are getting wider.
About Kiss de Corte
Economist Case de Corte presents his (own) view of the financial and economic world after 12:00 every day. Listen live on BNR Business or whenever you like at bnr.nl/keesdekort, Apple Podcast and Spotify.