The biggest risk to the UK’s economic recovery is that there will be no pick up in productivity, the head of the Office for Budget Responsibility (OBR) has told MPs.
Robert Chote said that the economy also faced uncertainty from the eurozone, and from other geopolitical pressures.
But he said the biggest uncertainty was how the so-called “productivity puzzle” was going to resolve itself.
UK workers’ productivity has remained weak, despite the economic recovery.
Speaking to the Treasury Select Committee, Mr Chote added that while wage growth coupled with productivity growth was desirable, salary increases without any accompanying productivity growth was not a welcome development.
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