UK's innovation lag
Mar. 9th, 2021 06:41 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
fridiAfter the global financial crisis, the UK is practically in a state of stagnation. In a stagnant situation, economic policy becomes a zero-sum game. Meaning, one's situation could only improve at the expense of another's. And that's definitely a recipe for conflict. Generating a sustained economic growth is essential for getting out of such a predicament.
The plummeting productivity rate is not unique for the UK, though. Every other G7 country has consistently registered a lower GDP per hour growth between 2010 and 2019 compared to 1990-2000. But the UK downturn is the largest, from 2.6% annual rate to just 0.4%. The only G7 economy that's doing worse is Italy, but they also started from a lower point.
This isn't hard to explain...
The plummeting productivity rate is not unique for the UK, though. Every other G7 country has consistently registered a lower GDP per hour growth between 2010 and 2019 compared to 1990-2000. But the UK downturn is the largest, from 2.6% annual rate to just 0.4%. The only G7 economy that's doing worse is Italy, but they also started from a lower point.
This isn't hard to explain...
