Think tank: dismal Britain is the new normalBusiness | Mar 14, 2018 19:00
Paul Johnson, director of the Institute for Financial Studies, says the economy is at least £300 billion smaller than we might have expected based on 2008 forecasts. "Yet we are now supposed to be at capacity, with no potential to make up for any of that loss.
"What’s more, growth projections remain very subdued.''
Johnson says that at no point in the next five years does the Office of Budget Responsibility believe that annual growth will exceed 1.5 percent. "To put an even less positive gloss on the numbers, growth in GDP per capita is forecast to be less than 1 percent in each of the next five years, half the pre-crisis trend.''
He adds: "Dismal productivity growth, dismal earnings growth and dismal economic growth are not just part of the history of the last decade, they appear to be the new normal.''