Monday, 10 December 2018
Productivity gap may be smaller than thought
Figures published this morning by the Organisation for Economic Co-operation and Development (OECD) suggest the productivity gap between the UK and other economies might be smaller than previously thought.
In a blog, Richard Heys, Deputy Chief Economist at the Office for National Statistics, says the difference between the UK and countries such as France, the USA and Germany had been “a matter for speculation” for quite a few years.
Weak management, poor training and low levels of capital investment have all had the spotlight aimed at them as the cause of the UK’s poor results was sought, says Richard.
But it turns out the problem could be down simply to the way the figures are collated and when the 40 countries that contribute to the monthly database apply the same measures the UK’s position is far more favourable – improving eight percentage points when compared with the USA, for example.