Economic figures for noughties worst since World War 2

Published on 29/12/2009 20:42

THE so-called "noughties" have seen Britain's worst economic performance of any decade since the Second World War while investors also have suffered their poorest stock market returns since the Great Depression, analysis yesterday revealed.

The data is likely to spell bad news for the government, which will try to stress its economic achievements ahead of next year's General Election.

It is likely to heap pressure on Gordon Brown in particular, who was in charge of the economy for most of the noughties as Chancellor of the Exchequer.

GDP growth has averaged just 1.7 per cent a year in real terms since 2000, the poorest economic growth of any ten-year period since the 1940s, research based on Office for National Statistics data showed. According to Morgan Stanley, it isn't only the country which has suffered – private investors have also taken the biggest hit to their portfolios since the 1930s.

Prices on the FTSE All Share Index have averaged -1.8 per cent during the noughties.

In the private sector, manufacturers have witnessed the most radical decline during the noughties.

After adjustments for inflation, the manufacturing sector has on average contracted by 1.2 per cent since 2000, the data showed.

Commenting on the research, Philip Hammond, shadow chief secretary to the Treasury, said: "After over a decade in power, Labour's economic legacy is record low growth and a poorly-performing stock market.

"This shows the urgent need for change to ensure the next decade is one of sustainable growth and a return to soundly-based prosperity."