U.K. Productivity Malaise Named as ‘Statistic of the Decade’

(Bloomberg) -- The U.K.’s dismal productivity performance since the financial crisis has been named the country’s “statistics of the decade” by the Royal Statistical Society.

The society chose “0.3%” -- the estimated average annual increase in productivity in the past 10 years. That compares with the 2% average increase in hourly output in the years before 2008. The performance, the worst since the 1800s, has lagged other major nations and been one of the biggest problems facing Britain’s economy, with implications for wages, wealth and living standards.

“Productivity is the single biggest key to our shared prosperity,” said RSS executive director Hetan Shah. “There’s a strong argument to say that if the U.K. could lift its productivity we would be less out of sorts with ourselves as a nation, as we would have more money in our pockets and more money for government to spend on public services.”

The issue could continue to be a problem for U.K. Prime Minister Boris Johnson as he prepares to finally deliver Brexit. Leaving the EU may actually worsen the situation by depriving the economy of productivity-enhancing innovation and investment.

The RSS also chose an international statistic of the decade. That number, “8.4 million,” reflects the rise in prominence of climate change and environmental damage.

The society said the estimated accumulated deforestation of the Amazon rainforest, over the past decade, is equivalent to around 8.4 million soccer pitches.

To contact the reporter on this story: Fergal O'Brien in Zurich at fobrien@bloomberg.net

To contact the editors responsible for this story: Craig Stirling at cstirling1@bloomberg.net, Paul Gordon

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