Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Low Productivity Poses Risk To Britain's Recovery - Niesr

Recommended Posts

http://uk.reuters.com/article/2014/02/07/uk-britain-economy-growth-idUKBREA1600620140207

Britain's economy will pick up pace this year but lagging productivity poses a risk for the country's medium-term outlook, a leading economic research body said on Friday.

The National Institute of Economic and Social Research expects the economy to grow 2.5 percent this year, raising its forecast from 2 percent in November and bringing its view into line with the consensus in a Reuters poll last month.

NIESR then expects growth to ease to 2.1 percent in 2015, a slightly sharper slowdown than most other economists expect.

Britain posted 1.9 percent growth in 2013 - its fastest since the financial crisis - but the rebound has relied heavily on consumer spending, raising doubts over how long it can last as wage growth fails to keep pace with inflation.

While NIESR expects consumer spending to remain the key driver of growth over the next two years, underpinned by a buoyant housing market, it also predicts that "robust growth" in business investment will support the recovery.

But low productivity would continue to pose a challenge for the economic outlook as it limits wage growth, it said.

The medium term outlook for the recovery is looking weak..

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   209 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.