Friday's episode briefly explained last week's review of GDP figures. The economy ended up 11% larger. Our per capita output is, therefore, higher, and our debt to GDP level is therefore lower. The scary news is that gross fixed investment as a percentage of GDP is even lower than we thought. The levels of private sector fixed investment determine the speed at which the economy can grow in the future. With investment at 14% of GDP, we cannot expect rapid economic growth.
