James Forsyth

A double boost for the coalition’s economic strategy

A double boost for the coalition's economic strategy
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Perhaps, the most important thing about the 0.8 percent growth figure for the third quarter announced this morning is that all but 0.1 percent of it came from the private sector. The strength of the private sector in this quarter suggests that the coalition is right to think that the private sector can more than make up for the jobs that will be lost in the public sector over the coming months.

In another piece of good economic news for the coalition, Standard and Poor have taken Britain’s triple A credit rating off negative outlook and returned it to stable. This should help keep the yield that the government has to pay on its gilts down. 

The coalition has taken a bold, and I believe correct, judgment on the economy. One has to imagine that the result of the next election is going to be determined by whether or not this judgment is vindicated. Today's, albeit very early, signs are promising for the coalition.