Productivity Creates Wealth

• 02.25.2015, 18:01
•  Europe,  World

For UK economy the key challenge is the lower productivity. The improvement of productivity will bring higher living standards. This is the description for the economy growth given by the Organization for Economic Co-operation and Development (OECD). Higher productivity for UK means improvement of infrastructure. Although the economic growth rate of UK is the highest among the G7 leading nations at 2.6%, the output per worker needs to be improved, BBC reports.

The economic growth is determined by low interest rates, quantitative easing (QE) and the support for the housing market. The employment has also recovered reaching to its pre-crisis level and is now at record level. OECD said, although the government uses all the tools mentioned above to support people to buy property, there is still a risk over productivity. OECD explains that there is no enough raise in housing supply in order to meet demand, but there is rise in house prices, which could be hazardous for financial stability.