It’s official: the UK’s GDP has been lower than most G7 countries for quite some time, and according to statistics posted by the Office of National Statistics (ONS) after the last quarter, this won’t change anytime soon.
The UK’s GDP is expected to have been better in the third quarter of this year compared to the second, but we still need to do more to really boost the UK’s productivity.
While the reasons for the UK’s low GDP rate and growth remains a mystery, here is everything we do know about the productivity puzzle.
We are less productive than previous years
The UK’s GDP was rising by roughly two per cent each year until the 2007 crash that impacted most G7 countries. Since then, the G7 have generally done well to recover and improve their productivity, yet the UK has barely managed to return to what it was ten years ago.
The UK’s rate of productivity is lower than it was before 2007
We are less productive than other countries
According to the ONS, the UK’s GDP per hour is higher only than Canada and Japan, and per worker we are only above Japan.
The biggest gap between the UK and other G7 country of GDP per worker is with the US, whose output was 26.5 per cent higher than the UK.
The biggest gap between the UK and other G7 country per hour comes from Germany, who is 25.6 per cent more productive than the UK.
The UK’s GDP was lower than most countries in 2016
We are less productive than predicted
The UK and the rest of the G7 were all below what was predicted of them by 2016.
Still, the rest of the G7 managed to come notably closer to the GDP predictions than the UK did.
The UK’s growth has been lower than predictions and other countries.
Why this happens is widely disputed, but there are suggestions data can be used to solve this productivity puzzle.
WATCH what the public think of the UK’s GDP here.