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

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza