During the 19th century, the UK stood as the preeminent global superpower. From the British Raj in India to the Dominion of Canada, its riches and power were unmatched. Since the height of the empire in 1922, when the UK governed 23% of the world population (458 million people with a domestic population of only 42 million) (Source: Statista), the UK has seen a gradual decline … Continue reading Cracks in the Crown: The decline of the UK Economy
The UK bond market is hitting the decks. Rising yields on gilts (UK Government bonds) are resulting in surging borrowing costs for the government; these developments are generating concerns about the country’s fiscal stability and reducing investor confidence. With the pound weakening against the US dollar and questions mounting over fiscal policy, the impact of the bond sell-off has widespread impact both on UK finances … Continue reading Bond Market Turmoil: Behind the UK’s Latest Gilt Sell-Off
INTRODUCTION Figure 1 – Graph showing how much less productive the UK is than other developed economies The productivity problem in the UK is a pressing issue that has significant implications for economic growth, living standards, and global competitiveness. Productivity, defined as the measure of output per unit of input (typically labour or capital), is crucial for evaluating how efficiently an economy converts resources into … Continue reading UK Productivity – JKP 2024
It is certainly true that UK productivity has hardly grown in the years since the Financial Crisis. It is also the case that the UK has performed worse than other developed economies. However, the reason for this relative under-performance does not lie with “total factor productivity” (the portion of outputs not explained by the amount of inputs used in production). In considering what strategies are … Continue reading UK Productivity – JKP 2024
It is no secret that the U.K. economy is not in a great state: A recession (three consecutive quarters of economic contraction) was declared after the last fiscal quarter of 2023, following a decade of borderline economic stagnation, and with annual GDP growth (a measure of all the goods, and services produced) no greater than the two per cent pre-COVID[1] rate. The picture painted by the … Continue reading UK Productivity – JKP 2024
Labour currently face a catch-22 situation: they need to encourage growth in a country that recently exited a recession, while also filling in the £22 billion fiscal ‘black hole’. But how will they approach fiscal policy in this upcoming Autumn Budget? Will Labour continue their approach of making ‘hard decisions’ or will they take a tamer approach on the 30th of October? As always, the government has … Continue reading Labour’s Autumn Budget: Balancing Growth with Fiscal Reality
Amidst the complexities of the UK economy, productivity stands in the way of sustained economic growth. The UK’s productivity has barely grown since the financial crisis. One method of measuring this is through using total factor productivity (TFP). Since 2007, just before the financial crash the following year, the TFP of the UK has only increased 1.7%, compared to the 27% increase from the 16 years preceding … Continue reading What strategies would be most effective for improving UK productivity? – JKP 2024
Productivity is defined as the amount of output produced per unit of input. The most commonly used notion is labour productivity which denotes output per working hour. It has been widely acknowledged that the UK has suffered from a productivity problem: a 0.3% decrease in GDP per hour compared to 2022 and a decrease of 24% from the forecasted trend pre-financial crisis, ranking the UK bottom of all … Continue reading What strategies would be most effective for improving UK productivity? – JKP 2024
The launch of Uber in 2009, heralded the birth of the so called “Gig Economy” involving the exchange of labour and resources through a digital platform that could actively match buyers (riders in the case of Uber) with sellers (the drivers). On such platforms, workers perform smaller jobs, commonly referred to as ‘gigs’, instead of, or perhaps on top of, a full-time job and are … Continue reading Does the gig economy support sustainable economic growth?
London, a city celebrated for its rich history, vibrant culture, and world-class attractions, also faces a stark reality: a housing crisis. Property prices have skyrocketed 454% since 1996, far outpacing average salary growth of just 109%; London is now also the 4th most expensive city for expats. Homeownership, once a cornerstone of British identity, is now out of reach for most young Londoners. Only the … Continue reading The London Rent VS Buy Divide
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