UK's Economic Outlook Hinges on Productivity Surge

Britain's economic future is at risk if productivity doesn't improve. If current trends persist, the GDP will decrease by 3.2% by decade's end, and the budget will face a 1.4% deficit, warns the Office for Budget Responsibility in its latest forecasts.

Britain's Office for Budget Responsibility has issued a stark warning about the country's economic future, highlighting the critical role of productivity growth. The agency reports that if the UK fails to improve its productivity levels beyond recent trends, economic output will drop significantly. This scenario could result in a 3.2% decrease in GDP by the end of the decade, coupled with a national budget deficit amounting to 1.4% of GDP.

In its latest fiscal forecast, the budget watchdog underscores the potential long-term financial consequences of stagnating productivity. The report outlines how vital a productivity boost is to prevent the projected downward economic spiral, which could undermine national financial stability.

The Office calls for immediate actions to foster an economic environment conducive to productivity enhancement. This strategic pivot is deemed essential for averting a protracted economic downturn, urging policymakers to address the productivity challenge at the forefront of economic planning.

(With inputs from agencies.)