Economics
Britain’s Productivity Pain Costs Hammond $120 Billion
- Office for Budget Responsibility sees no improvement this year
- Poor performance leads growth forecasts to be revised downward
This article is for subscribers only.
The U.K.’s budget watchdog warned the economy faces years of poor productivity as it gave up assuming the post-financial crisis weakness will be temporary.
With Brexit looming over the outlook, the Office for Budget Responsibility said it sees zero improvement in output per hour this year and weaker growth in the coming years than previously forecast, with the average increase in the five years through 2021 slashed by half to 0.9 percent.