?
This is a paper by Cebr Chief Executive Douglas McWilliams which attempts to explain the inconsistency between the UK?s growth and employment performance.
Its key point is that because of the strong performance before the financial crisis the UK?s productivity track record has not been too bad and keeps pace with the US and Europe.
Even taking account of the recent apparent decline, the UK?s productivity growth since 1991 has been almost exactly equal to that for the US and nearly double that in continental Europe.
The article goes on to explain that a significant part of the current apparent slowdown is not because productivity recently has been weak but that productivity in 2007 and 2008 was overestimated.
Using Cebr?s knowledge of City bonuses and job performance it argues that much of the apparently high productivity in the City in 2007/2008 was because profits were being booked that had not in fact been made and that indeed subsequently? turned into losses.
Equivalently, extremely high productivity growth in areas like telecoms and IT reflected high levels of usage in 2007/08 but as the economy slowed, demand for these sectors grew by less than expected.
Looking to the future, the paper highlights some good news; that UK productivity performance has been strong looking over the longer term, but since demand is unlikely to grow rapidly in the near future, we should assume slower productivity growth in the coming years.
This may mean that government plans have to be reassessed in the light of more realistic forecasts for economic growth.
For full details and numbers please read the report attached.
Click here for PDF
?
Source: http://www.cebr.com/?p=969
strait of hormuz mars needs moms gary johnson gary johnson stephen curry hes just not that into you hes just not that into you
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.