Economics Weekly by Lloyds TSB

One of the key indicators of how well economies perform is productivity. Over the medium to long term, real income growth, and hence living standards, depend on how fast an economy can grow its output based on its labour and capital inputs.

UK productivity: trends and prospects

One of the key indicators of how well economies perform is productivity. Over the medium to long term, real income growth, and hence living standards, depend on how fast an economy can grow its output based on its labour and capital inputs. Those economies that perform well on this score tend to be those that are the most flexible and dynamic – i.e. those that have a high degree of skilled labour, undertake strong capital investment, employ a high proportion of their available workforce, and combine their labour and capital inputs in the most efficient manner.

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