The Productivity Puzzle
A recent OECD report has revealed that
Britain’s real GDP growth is stronger than the OECD’s average, with
unemployment also only 6pc. This has all helped to increase business and
consumer confidence. However, since the ‘Great Recession’, the UK has failed to
increase its productivity, with the productivity gap compared with other G7 economies
increasing, and it is currently at its largest since 1992. On the other hand,
the USA’s productivity is 9pc higher than its pre-crisis levels and France too
has increased its productivity by 2pc since 2008.
