The Olympics, is it just games?

THE last few months have seen an ever-increasing pessimism over the current economic climate, in the UK and further afield.

Inflation has steadily increased, with the UK CPI figure announced last week at 4.4% predicted to rise to 5% before the end of the year.

At the same time, economic growth has slowed down almost to a standstill, with the threat of recession, technically two periods of negative growth, hanging in the air.

This uncomfortable combination of slowing economic activity and higher prices – stagflation – is difficult to deal with. There have been calls for a reduction in interest rates but thus far this has been resisted because of the potential adverse impact it has on inflation.

The UK economy is too sick to take the treatment many consider it needs and it will take time for the expected downward move in prices at the end of this year to have an effect. The atmosphere of gloom seemed to deepen through the summer, with the English football team failing to qualify for the European Championships. Not only did this have a direct impact on pubs, and on companies selling flags for cars, it also seemed to cast a shadow over the nation. But is the sporting gloom lifting? Team GB has enjoyed unprecedented success at the Olympics in Beijing, with the weekend dominated by home success. All the more encouraging when the bulk of medals have been won sitting down. This has created some of the feel-good factor so notable by its absence in recent months.