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Slowing productivity a cause for alarm for developed nations? watch

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    Slowing productivity a cause for alarm for developed nations?

    UK productivity barely increasing = lower living standards in the future.

    What do you think is causing it?


    It is all quite interesting.

    Productivity growth in the UK from 08-13 can be explained by the lack of investment (we had a persistent decline). If firms are not investing then they are not innovating as quickly and if they are not innovating then naturally productivity will increase at a slower rate.

    The query however is why this is the case across the G7. In Japan (the G7 state with lower productivity than the UK) we can put it down to the poor economic management and declining customer base that we've observed over the last 20 years but that does not explain why states like France would be recording higher productivity growth than the UK and nor why US productivity growth would be so weak given that they lack many of the issues seen in Europe and the UK.

    It's a puzzle and truth be told i'm not sure what the current solution is given that investment was good in the UK in 2014 and 2015.
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