“The absence of productivity growth in the seven years since 2007 is unprecedented in the post-war period,” said the ONS after its figures showed yet another fall in productivity.
Whichever way you measure it, it’s rubbish.
It’s not only rubbish when compared to past performance, it’s pretty bad when compared to most of the other G7 economies. We closed the gap during the 1990s and 2000s only to see it open up again after the recession.
Chart via IFS
LSE’s Centre for Economic Performance published a pre-election briefing on productivity a couple of weeks ago. Among its conclusions:
UK GDP per hour is currently around 17% below the G7 average. This is due to low investment especially in infrastructure and innovation, poor management and weak intermediate skills.
This chart, taken from the CEP report, shows that, while R&D investment has risen in Germany, France and the US, it has been falling steadily…
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Utopia, you are standing in it! 
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