OECD Says UK Needs to Increase Productivity to Maintain Growth

The Organisation for Economic Co-operation and Development (OECD) says further progress in UK living standards depends on higher productivity.

It says the UK’s growth rate is now the highest in the G7 leading nations at 2.6%, but output per worker needs to rise to maintain growth.

But wide-ranging government policies have aided recovery, the OECD says.

These include low interest rates, quantitative easing (QE) and support for the housing market.
In its latest report, the body says employment has recovered to its pre-crisis trend and is now at record levels. However, weak labour productivity since 2007 has been holding back real wages and, it says, well-being.

The sustainability of economic expansion and further progress in living standards rest on boosting productivity growth, which is a key challenge for the coming years.

Although government schemes to help people buy property had been helpful, there were also risks to watch out for, the OECD added.

via BBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.