With the current turbulence in the stock market and issues around Northern Rock, there is no doubt that the economy is going to be a significant issue during this year.

It's obvious that lots of the things happening in the UK are also happening on a global basis - we need only look at the collapse in the American mortgage market to see that the causes are international.  We live in a world where just as the global weather system means that a weather system in the pacific has probably meant more rain in the UK this January, similarly when there is economic turbulence elsewhere in the global market it affects UK.

To use a different image there is an old economic saying the when America sneezes Europe catches a cold.

The real question is whether or not Britain is in a better position than in previous times to weather the economic stormy weather.  There was an interesting statistic that was published in the famous American magazine, Time this month, that showed that UK's gross domestic product (GDP) - average income per person -  is now $500 more than the US figure at $46,380. 

What this means is that for the first time since the 19th century the average Brit earned more than average American.  Compare this to the equivalent information when there was last major economic turbulence, in 1993, where the UK's GDP was 34% less than US.

In other words in the last decade or so UK has been climbing the economic league table at a much faster rate than the USA which is evidence of the strength of our economy to face up to these turbulent economic times, and come through strongly in comparison to other countries.  Now when America catches a cold we may sneeze, but we won't necessary get pneumonia.