A winter of discontent

Official figures show that this is the longest, deepest recession since the war

Britain is the last major economy still in recession, according to data from the Office for National Statistics (ONS) released today.

While the US, Japan, France, Germany and the rest of the eurozone have all come out the other side, we remain mired in recession. According to the ONS figures, the economy shrank by 0.2 per cent in the third quarter of this year (July to September).

Save your tears; there's more. This means that the economy has shrunk by 6.03 per cent in total since early 2008. The key part of that figure comes after the decimal point. That sneaky 0.03 per cent pushes the figure of decline just above the recession of the early 1980s, when there was a 6 per cent decline between 1979 and 1981.

I won't pretend that I remember the agonies of those early days of the Thatcher government, but the symbolism of the lost generation -- the three million unemployed -- and the collapse of businesses small and large still holds strong. It is shocking that this recession, here and now, has surpassed that, however incrementally.

There is another dubious honour, too. This is the sixth consecutive quarter in which the economy has contracted, taking us ahead of the last downturn, when the economy shrank for five quarters between 1990 and 1992. We are now in the longest recession since records began in 1955.

Why it so much worse here? It is difficult to say without falling into a debate that has become increasingly dominated by party politics in the run-up to the general election -- over whether to invest, in the Keynesian model, or to cut and bear the devastating consequences.

The particulars of the crisis that triggered it are fundamental, as are those of our economy. Certainly, Britain is disproportionately reliant on financial services and property investment, and Gordon Brown's comment in January that we are "well placed" to emerge from the downturn appears misguided at best.

Yet there is a glimmer of hope in the figures.

The 0.2 per cent contraction is better than the previous estimate of 0.3 per cent, which could imply that the current quarter -- the fourth of 2009 -- will mark a formal exit from the recession. This is the official expectation of the Bank of England and the government, though it is optimistic, and weak consumer spending may yet throw a spanner in the works.

With some economists predicting that unemployment could reach that three million figure in 2010, we must hope that today's are the last benchmarks that this recession passes.

 

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Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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Inside a shaken city: "I just want to be anywhere that’s not Manchester”

The morning after the bombing of the Manchester Arena has left the city's residents jumpy.

On Tuesday morning, the streets in Manchester city centre were eerily silent.

The commuter hub of Victoria Station - which backs onto the arena - was closed as police combed the area for clues, and despite Mayor Andy Burnham’s line of "business as usual", it looked like people were staying away.

Manchester Arena is the second largest indoor concert venue in Europe. With a capacity crowd of 18,000, on Monday night the venue was packed with young people from around the country - at least 22 of whom will never come home. At around 10.33pm, a suicide bomber detonated his device near the exit. Among the dead was an eight-year-old girl. Many more victims remain in hospital. 

Those Mancunians who were not alerted by the sirens woke to the news of their city's worst terrorist attack. Still, as the day went on, the city’s hubbub soon returned and, by lunchtime, there were shoppers and workers milling around Exchange Square and the town hall.

Tourists snapped images of the Albert Square building in the sunshine, and some even asked police for photographs like any other day.

But throughout the morning there were rumours and speculation about further incidents - the Arndale Centre was closed for a period after 11.40am while swathes of police descended, shutting off the main city centre thoroughfare of Market Street.

Corporation Street - closed off at Exchange Square - was at the centre of the city’s IRA blast. A postbox which survived the 1996 bombing stood in the foreground while officers stood guard, police tape fluttering around cordoned-off spaces.

It’s true that the streets of Manchester have known horror before, but not like this.

I spoke to students Beth and Melissa who were in the bustling centre when they saw people running from two different directions.

They vanished and ducked into River Island, when an alert came over the tannoy, and a staff member herded them through the back door onto the street.

“There were so many police stood outside the Arndale, it was so frightening,” Melissa told me.

“We thought it will be fine, it’ll be safe after last night. There were police everywhere walking in, and we felt like it would be fine.”

Beth said that they had planned a day of shopping, and weren’t put off by the attack.

“We heard about the arena this morning but we decided to come into the city, we were watching it all these morning, but you can’t let this stop you.”

They remembered the 1996 Arndale bombing, but added: “we were too young to really understand”.

And even now they’re older, they still did not really understand what had happened to the city.

“Theres nowhere to go, where’s safe? I just want to go home,” Melissa said. “I just want to be anywhere that’s not Manchester.”

Manchester has seen this sort of thing before - but so long ago that the stunned city dwellers are at a loss. In a city which feels under siege, no one is quite sure how anyone can keep us safe from an unknown threat

“We saw armed police on the streets - there were loads just then," Melissa said. "I trust them to keep us safe.”

But other observers were less comforted by the sign of firearms.

Ben, who I encountered standing outside an office block on Corporation Street watching the police, was not too forthcoming, except to say “They don’t know what they’re looking for, do they?” as I passed.

The spirit of the city is often invoked, and ahead of a vigil tonight in Albert Square, there will be solidarity and strength from the capital of the North.

But the community values which Mancunians hold dear are shaken to the core by what has happened here.

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