Britain is on the brink of a recession that will last into 2024, according to the Bank of England. But the country’s malaise runs deeper than a cyclical contraction. Since 2008, the UK has suffered a sharp slowdown in productivity. To remedy that, Prime Minister Rishi Sunak will need to take unpopular measures.
A Union Jack flag flies above the London Eye in London, Britain, September 11, 2017. REUTERS/Hannah McKayto the Bank of England. But the country’s malaise runs deeper than a cyclical contraction. Since 2008, the UK has suffered a sharp slowdown in productivity. To remedy that, Prime Minister Rishi Sunak will need to take unpopular measures.
Plugging the gap requires better education and workforce training. The country also needs to boost investment in new technologies, like automation in manufacturing. In 2021, gross fixed capital formation, a measure of investment, accounted for 17% of UK GDP, compared to 24% in France and 21% in the United States, according to the World Bank. To reach the average level of other G7 nations, Britain would need an extra 115 billion pounds a year of annual investment.
To pay for such incentives, Sunak could tax wealth. Private wealth has risen from three times GDP to nearly eight times since 1965, yet state taxes on property, capital gains, inheritances and financial transactions have flatlined at around 2% of GDP, according to the Resolution Foundation. Doubling them would raise 45 billion pounds.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Joe Biden reportedly ‘all in’ and readying launch of 2024 campaignPresident Joe Biden is reportedly “all in” on a second run for the White House — with an official announcement to come within weeks.
Baca lebih lajut »
2024 Renault Captur: Here's What We Know About The Updated Small SUV | CarscoopsThe smallest SUV in Renault's European range is up for a mid-lifecycle update, alongside a longer variant
Baca lebih lajut »
Biden border visit all about 2024 posturing, immigration plan about 'streamlining illegality': criticsThe panel on Fox News Channel's 'The Five' sounded off about President Biden's upcoming visit to the border and new immigration program for Venezuelans and Cubans.
Baca lebih lajut »
Rivals.com - Louisville wows landing five-star 2024 Florida OLB TJ Capers
Baca lebih lajut »
The world's largest smartphone market is not expected to see growth until 2024Analysts already expect the world's largest smartphone market, China, to report lower smartphone shipments and sales in 2023 after reporting a drop in both for last year.
Baca lebih lajut »
Mexican CBDC Unlikely to Be Ready by 2024 – Economics Bitcoin NewsAccording to local sources, the Mexican central bank digital currency (CBDC) is still in its initial stages of development, with Banxico yet determining the requirements for its issuance.
Baca lebih lajut »