Factors Driving Low UK Productivity Growth

In the Financial Times , BCG’s Raoul Ruparel discusses why UK productivity growth lags its past performance and that of global peers. Drawing on a recent BCG report , he points to challenges across the manufacturing, financial services, and information and communications sectors compared with three decades ago. “We have this long tail of small, low productivity firms,” he notes, adding that many businesses are “just surviving, holding on to labor and other resources, which maybe could be more productively applied elsewhere.”