Explaining and Restoring Low Productivity Growth in the UK

12 Mar 2018

The purpose of this contribution is to explain the low and acute productivity in the UK and also propose policies that would potentially increase productivity to more normal levels. It is the case that although the slowdown in productivity occurred around 2000 in many advanced, but also in other countries, it has become more pronounced after the Global Financial crisis and the subsequent Great Recession. We attempt to explain the reasons behind this slowdown in the UK productivity and also to discuss relevant economic policies, which would restore the low productivity in the UK. We conclude by emphasizing the most prominent economic policies for this purpose, and suggest the urgency of implementing relevant policies to cure the low and acute productivity in the UK.