(Bloomberg) -- Britain's economic progress stalled following the global financial crisis and this has left labor productivity about 20 percent lower than if it had followed its pre-crisis trend. The U.K. can't spend its way out of this situation, according to analysis by Bloomberg Economics, which shows that the direct impact of weaker capital spending since the financial crisis explains just 4 percentage points of the shortfall. The other 16 percentage points reflect the weaker growth of total factor productivity, and that's the real problem.
To contact the reporters on this story: Jamie Murray (Economist) in London at jmurray126@bloomberg.net;Dan Hanson (Economist) in London at dhanson41@bloomberg.net
To contact the editors responsible for this story: Zoe Schneeweiss at zschneeweiss@bloomberg.net;Sheldon Reback at sreback@bloomberg.net
©2018 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
