GMB London study shows GDP per head recovered to 2.1% above 2007 level

26 January 2017 Download as PDF

GMB London study shows the GDP per head in 2016 has recovered to 2.1% above 2007 level after 7 years of falling GDP per head since the recession.

The extent and duration of the drop in GDP per head shows the toll on workers incomes arising from the recession, caused by the bankers and the multi millionaire elite says GMB London.

GMB London Region responded to the publication of the figure for GDP for 2016 today and assessed the level of GDP per head each year from 2007 and the impact of the recession.

The data is as follows:

	Gross Domestic Product: chained volume measures: Seasonally adjusted £m	population	GDP per capita	2007=100	% change since 2007
2007	1,712,996	61,319,100	27,936	100
2008	1,702,252	61,823,800	27,534	98.6	-1.4
2009	1,628,583	62,260,500	26,158	93.6	-6.4
2010	1,659,772	62,759,500	26,447	94.7	-5.3
2011	1,684,820	63,285,100	26,623	95.3	-4.7
2012	1,706,942	63,705,000	26,794	95.9	-4.1
2013	1,739,563	64,105,700	27,136	97.1	-2.9
2014	1,792,976	64,568,000	27,769	99.4	-0.6
2015	1,832,318	65,110,000	28,142	100.7	0.7
2016	1,869,688	65,572,500	28,513	102.1	2.1

Warren Kenny, GMB regional secretary for London Region, said:

"These figures show that GDP per head in 2016 has recovered and is now 2.1% above the level in 2007."

"The figures also show that GDP per head were below the 2007 level for 7 years due to the recession. In 2008 GDP per head was 6.4% below the 2007 level which was the trough of the recession."

"This fall in GDP per head is the root cause of the real value of earnings for average workers falling in real terms to be still about 12.6% below the pre-recession levels."

"The rise in GDP per head is the only real measure of the potential of the economy to generate wage increases. The extent and duration of the drop in GDP per head shows the toll on workers incomes arising from the recession, caused by the bankers and the multi-millionaire elite. Is it any wonder that people are angry that they have been made to pay for the recession and the costs of saving the banks? Their priority now is to see a recovery in the real value of earnings to 2007 levels."

"The figures also show that a bigger economy is not the same as a more prosperous one for the majority of working people. Demographic factors do play a positive role in the growth of the economy but it is GDP per head that is crucial to productivity and living standards."

End

Contact: Gary Doolan on 07590 262 504 or 0208 457 4143

Notes to editors

1) 2016 population data are 2014-based projections for start of the year: National Population projections: 2014-based. Office for National Statistics

2) Gross Domestic Product: chained volume measures: Seasonally adjusted £m. Office for National Statistics

3) Population Estimates: Office for National Statistics

The extent and duration of the drop in GDP per head shows the toll on workers incomes arising from the recession, caused by the bankers and the multi millionaire elite says GMB London

GMB London Region responded to the publication of the figure for GDP for 2016 today and assessed the level of GDP per head each year from 2007 and the impact of the recession.

The data is as follows:

	Gross Domestic Product: chained volume measures: Seasonally adjusted £m	population	GDP per capita	2007=100	% change since 2007
2007	1,712,996	61,319,100	27,936	100
2008	1,702,252	61,823,800	27,534	98.6	-1.4
2009	1,628,583	62,260,500	26,158	93.6	-6.4
2010	1,659,772	62,759,500	26,447	94.7	-5.3
2011	1,684,820	63,285,100	26,623	95.3	-4.7
2012	1,706,942	63,705,000	26,794	95.9	-4.1
2013	1,739,563	64,105,700	27,136	97.1	-2.9
2014	1,792,976	64,568,000	27,769	99.4	-0.6
2015	1,832,318	65,110,000	28,142	100.7	0.7
2016	1,869,688	65,572,500	28,513	102.1	2.1

Warren Kenny, GMB regional secretary for London Region, said

“These figures show that GDP per head in 2016 has recovered and is now 2.1% above the level in 2007.

“The figures also show that GDP per head were below the 2007 level for 7 years due to the recession. In 2008 GDP per head was 6.4% below the 2007 level which was the trough of the recession.

“This fall in GDP per head is the root cause of the real value of earnings for average workers falling in real terms to be still about 12.6% below the pre-recession levels.

“The rise in GDP per head is the only real measure of the potential of the economy to generate wage increases. The extent and duration of the drop in GDP per head shows the toll on workers incomes arising from the recession, caused by the bankers and the multi-millionaire elite. Is it any wonder that people are angry that they have been made to pay for the recession and the costs of saving the banks? Their priority now is to see a recovery in the real value of earnings to 2007 levels.

“The figures also show that a bigger economy is not the same as a more prosperous one for the majority of working people. Demographic factors do play a positive role in the growth of the economy but it is GDP per head that is crucial to productivity and living standards.”

End