Economic Survey of the United Kingdom 2015

The OECD confirms what we have stated as one of our ten eternal Macroeconomic truths (No 10) – long term health of an economy requires productivity growth, and productivity growth requires a supportive banking system to boost investment.

Main Findings

• Strong growth forecast (2.5%) relative to the G7 (average 1.7%) and the OECD (average 1.4%)

• Employment is at record levels

• Greater infrastructure provision is needed

• Business lending remains tight

• Housing supply is insufficient

Key recommendations to enhance infrastructure

•Build on the National Infrastructure Plan

• Expand public-private partnerships

• Develop further public guarantees

• Strengthen the Green Investment Bank

Main Findings

• Labour productivity is subdued

• Wages and GDP per capita refl ect weak productivity

• Vibrant productivity is key to sustain strong growth

• Stronger wages would boost public finance

Key recommendations for sustainable bank lending

• Continue reforms to make banks more stable

• Encourage and regulate new credit providers

• Share credit information more widely

• Relax land planning restrictions

Unleashing productivity

Wide-ranging domestic policies have boosted growth. The sustainability of economic expansion and further progress in living standards rest on stimulating productivity growth, which requires further structural reforms. … and higher financing of businesses.

 www.oecd.org/eco/surveys/economic-survey-united-kingdom.htm