fbpx

UK 24th out of 33 for economic growth

Nia Williams

May 8, 2013

The research, which comes as the IMF begins its two week visit to Britain today, says UK income per head – economic growth that takes account of population change – will not return to its pre-crash level until 2017.

By contrast, income per head in Germany and the US will be over 10% higher a decade on from the financial crisis, while South Asian economies are set to have growth of over 20%. Only Italy is experiencing a slower recovery than the UK among G7 countries.

The study also reveals how the UK is emerging from recession at a slower rate than at any time in its recent history.

In 1985, UK income per head was 6% higher than it was before the 1980 crash. In 1995, UK income per head was 7% higher than it was before the 1990 recession. UK income per head is today still 6% below its 2008 level.

TUC General Secretary Frances O’Grady said: “We truly are experiencing a lost decade for growth.

“While other countries are already seeing a rise in economic output, the UK won’t return to its pre-crash level for another four years.

“Even George Osborne’s favourite economic institution, the IMF, is calling on him to change course. Without a fresh approach we will continue to trail our economic rivals and bring up the rear in the global economic race.

“He should start learning from countries like the US whose ambitious programme of investment in jobs is helping to turn its economy around.”


Sign up to our daily email