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Uk Productivity Hits 15-year Low

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More bad news for Brown will be released on Monday showing he has failed in his main economic priority of productivity growth. Reading between the lines the report also casts doubt on the ONS growth figures as one would not expect a decline in trade deficit in the absence of a recession or economic slow down.

Oh what a tangled web we weave when first we practice to deceive!

UK productivity hits 15-year low

BRITAIN’S productivity growth has collapsed to its lowest rate since 1990, when Margaret Thatcher was still prime minister, according to an analysis of official statistics this weekend.

Output per worker increased by only 0.6% last year, the weakest for 15 years, in a devastating blow to Chancellor Gordon Brown, who has long emphasised that increasing productivity was his main economic objective.

These first estimates were calculated by Bridgewell Securities, using official growth and employment figures for the first quarter of the year, on the assumption that these will not subsequently be revised upwards. Official productivity figures for 2005 as a whole have not yet been published by the Office for National Statistics (ONS).

The research comes as the Institute of Directors warns on Monday that the UK trade deficit is set to hit £100bn (E145, $179bn) by 2010. Graeme Leach, chief economist at the IoD, said: “In the absence of a recession or sharp economic slowdown, we don’t expect to see any decline in the trade deficit.”

The ONS claims that the economy grew by 0.2%, 0.5%, 0.4% and 0.6% quarter on quarter, and 1.8% for the year as a whole in 2005, and that employment increased by around 1%.

Richard Jeffrey, chief economist at Bridgewell Securities, said: “Using the latest published numbers, we estimate productivity rose just 0.6% in 2005 – the lowest increase since 1990.

We are starting to see more and more stories comparing todays economy with that around 1990. B)

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More bad news for Brown will be released on Monday showing he has failed in his main economic priority of productivity growth. Reading between the lines the report also casts doubt on the ONS growth figures as one would not expect a decline in trade deficit in the absence of a recession or economic slow down.

Oh what a tangled web we weave when first we practice to deceive!

UK productivity hits 15-year low

We are starting to see more and more stories comparing todays economy with that around 1990. B)

The headline states "UK productivity hits 15-year low", yet it has done no such thing at all. It's in fact GROWN by 0.6%.

Is it not enough just to keep up with what we were doing previously, and why is this seen as such a disaster?

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The headline is indeed misleading, should have read "Productivity growth rate hits 15 year low".

It's not enough to keep up with what we were doing. A growing economy is maintained by efficiency gains part of which is increasing productivity. Low rates of efficiency-growth means low GDP growth means looking for efficiency gains elsewhere which means increased unemployment.

Edited by thx_1138

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The headline states "UK productivity hits 15-year low", yet it has done no such thing at all. It's in fact GROWN by 0.6%.

Is it not enough just to keep up with what we were doing previously, and why is this seen as such a disaster?

public spending increased more than that , where do you think all the money come from? tax

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Guest Riser

The headline states "UK productivity hits 15-year low", yet it has done no such thing at all. It's in fact GROWN by 0.6%.

Is it not enough just to keep up with what we were doing previously, and why is this seen as such a disaster?

Brown needs increased productivity to offset wage inflation, without increased productivity higher wages fuel inflation:

SPEECH BY RT HON DR GORDON BROWN MP 1999

And because, under the new system, unacceptably high wage rises, that are not justified by economy-wide productivity improvements, will not lead to higher inflation, but to higher interest rates, it is in no one's interest if today's pay rise threatens to become tomorrow's mortgage and interest rate rises. But now that we are creating a platform for stability, we must use this opportunity to move from the old vicious circle of low investment, low productivity, and a return to stop go to a new virtuous circleof investment, productivity, and steady growth.

But it is a fact that in every post war British recovery, British investment has been too low, British productivity growth too little, the rise in wages too fast - and as a country we have complacently and fruitlessly exhausted our energies in debates about dividing up the national economic cake instead of concentrating on how we invest and grow.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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