With the approaching General Election due on May 7th we are being presented with a blizzard of facts and figures to prove almost any point the politicians care to dream up. In fact in many cases the figures cited, frequently taken out of context, are often used to prove opposite sides of the same point.
However a recent report from the Chief Economist of RBS throws new light on the economy and begs the question is the economic growth we have been experiencing coming to an end? So what are the details?
Firstly the UK economy grew by 2.8% last year making our economy one of the fastest growing in the developed world. Inflation was down to 0.6% at the end of 2014 when we exclude oiland has since dropped 0%. Many economists fear that we will be experiencing deflation for the first time since 1948 holding out the prospect of slowing growth.
The ‘feel good’ factor seems to have kicked in during 2014 with business investment increasing by 7.5%. However despite this and the fact that GDP is up by 3.4% on pre-crisis levels, output per hour, a measure of productivity, is 1.7% below its old level. Why is this? Lack of productivity has long been an issue for the British economy and unless productivity improves quickly, 2014 will be seen as the peak of economic growth for some time.
Let us have your thoughts about how the economy is affecting you. If you are concerned about the productivity of your business and how to improve it talk to your local business advisor or call 0333 444 8522 (lo call number) to be connected to a productivity specialist.