supply side policies flashcards LEARN
1
Q
reasons for slow long run eco growth in UK
A
- Persistent productivity gap: Growth of output per person has been slow since 2008 and there is a large gap between GDP per worker employed between the UK and the USA / Germany
- Investment gap: Low capital investment and research and development as a share of GDP. The UK has the lowest capital investment (18 % of GDP) of leading high-income countries.
- Trade weakness: UK has a structural trade deficit and falling export-to-GDP ratio accelerated by Brexit & leaving European Union single market. Many small businesses have stopped exporting to the EU.
