Attack of the zombies: Banks may be to blame for Britain’s measly productivity growth

Posted: February 24, 2016 in economy
Tags: , ,

UK Only Article: 
standard article

Fly Title: 

Attack of the zombies


A lack of lending leaves Britons working less efficiently on lower wages

Main image: 


COMPARED with most other rich countries, the British economy looks strong. In 2015 GDP grew by 2.2%, more than the 1.5% seen in the euro zone. And yet, nearly a decade after the financial crisis began, there is one serious weakness: productivity (defined as the amount each worker produces in a given period of time). In the period 2000-08 annual productivity growth was nearly 2%. In 2009-14, though, it was pretty much zero, far below what rivals like America and Germany have achieved. Stagnant productivity growth explains why British real wages are still 5% below their pre-crisis peak.
On February 24th the IMF released its yearly assessment of the state of the British economy. It zooms in on the productivity slowdown. Using a fine-grained dataset, containing over 30m observations of British firms between 2005 and 2014 (including their location and income statements), the IMF looks at …

via Economic Crisis


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s