In the UK, the economy has opened up substantially again. The UK’s budget deficit was more than 14 per cent of UK GDP last year. This would be higher, says BNR economist and commentator Kees de Kort, because the British government has lent too much to the companies and will not pay them back in full.
The British are now opening their doors again, but guess what? They take into account that the budget deficit will again be ten percent of GDP. The money is still free, the economy has been abandoned, and vaccinations are finished. 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 will gain 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 economics?” Asks de Corte. We swam into the trap: go early and hope all goes well. It turns out that moving forward on time means the problems are getting bigger.
About Case de Corte
Economist Cees de Corte presents his (own) view of the financial and economic world every day after 12:00. Listen live on BNR Zakendoen or when you want it over bnr.nl/keesdekort, Apple Podcast, and Spotify.
“Coffee fanatic. Friendly zombie aficionado. Devoted pop culture practitioner. Evil travel advocate. Typical organizer.”