The UK economy according to the OECD in [XX] charts
Last year Andy Haldane, the Bank of England's chief economist, said that the economy "appears to be writing in both agony and ecstasy. He noted that, although the economy was growing fast than most other big rich economies, real wages were falling and productivity growth or output per hour worked had stalled. Since then, wages have finally crept ahead of inflation, [XX]. However, a new headache for policymakers has emerged, [XX].
- Growth is strong:
The OECD said real gross domestic product (or economic growth) has returned to pre-crisis levels and growth has been broadening. It said that loose monetary policy, measures to support the housing market recovery such as buy-to-let, as well as government fiscal policies like spending. In addition to this "structural reforms have strengthened work incentives and supported a business friendly environment," it said.
2. Exports:
However, exports have barely contributed to the economic recovery, and the UK has been continuously losing market share, broadly in line with the G7, since the late 1990s. "Declining market share could in part reflect the rise of China and other emerging market economies, but could also be driven by domestic supply factors." It said this would explain why the falling value of the pound, which makes exports cheaper and thus more competitive, has not helped manufacturing, oil and gas sector exports.
[XX]