The UK economy performing better than originally thought … although largely as a result of illegal activity!

The methodology for calculating the value of all the goods and services produced in the UK (often known as Gross Domestic Product – GDP) has been changed to bring us in line with the EU approach, and the performance of the economy re-based on these new calculations.  This new approach shows that the UK economy is £10bn larger than originally thought, the recession of 2008/9 was not as severe, and the recovery has been stronger than the previous data suggested.  This is all good news, although closer examination of the figures suggest that the £10bn boost to the economic figures is largely as result of the methodology now accounting for sex work (estimated to be worth some £5.3bn a year) and illegal drug sales (£4.4bn).  Furthermore, this increased output has landed the UK with the much publicised invoice for an additional payment to the EU of some £1.7bn.