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London is the only region of the UK where the productivity has fallen below pre-pandemic levels in 2023, the official data displayed, capital efficiency has been raised before the capital crisis.
Output per hour works in London Falling on an average annual rate of 0.3 percent between 2019 and 2023, according to the National Statistics Published for National Statistics on Thursday.
The UK as a fully posted 0.7 per cent average growth at the same time, with all other regions outside the capital reporting of the productivity of 2023 than before the Covid-19 pandemic.
In spite of the remaining most productive region – with output per hour of 28.5 percent above the UK average – from 33.4 percent of 2019 and percentage in 2007.
Economists taught a mix of underperformance in London, including post-crisis constraints in high-drawing areas high-drawing in high-drawing areas of high-drawing areas of high-drawing areas of high-drawing areas high-drawing.
Paul Swinney, at the Center for cities thought the tank, quoted “is a relative to attract and maintain capital talent and changes in migration after Brexit.
The analysts also said that survey response rates after the pandemic may have affected the accuracy of the data. As many official indicators, Thursday numbers are marked with “official progress statistics”, indicates a wider level of uncertainty.
Since the 2008 Financial Crisis, Productivity in London’s financial sector has been held back by a more cautious approach to dealmaking, tighter government regulation and a slowdown in credit expansion, according to Ron Martin, Professor of Economic Geography at the University of Cambridge.
The increase in remote work since the pandemic “can have a reason to contribute” in the continuous underperformance in the sector, he added.
The analysis of the center for cities found that poor productivity in London is involved in the investment of expensive real estate “more productive real estate information, such as research and development and development and software.
“Destroyal disputes – especially in the transportation sector, including public, air travel,” also the Director of the Productive Institution, an organization of research.
He added that the power of South East and East in England could suggest some experiences of higher effects of “donut” transit from capital to surrounding regions.
London’s “Prosible Malaise” continues to output left below where it was 16 years ago, as Swinney. It affects the prosperity of capital but at the national performance too, he added.
The new government’s new strategy is expected next week, “will need a response to London problems if the UK is going out of its productive stupor”, he noticed.
Productivity growth is an important driver of higher living patterns as businesses with a higher output with large scope to increase wages.
London is the largest and richest economy of the region and a significant source of revenues for public finances. In the fiscal year of March 2023, capital increases the best income in any region, at £ 216.4bn, according to official data.
The total productivity of the UK is highly closed due to the financial crisis, after decades of strong growth, a trend weighed in British living standards.
Ons data appeared to be between 2019 and 2023, the North West registered the fastest annual productivity increase in 2.4 percent, followed by Northern Ireland at 1.8 percent.
The two regions recorded average output growth of more than 1 percent, while the number of hours employed fell. For London, the growth is more moderate 0.5 percent, while the number of hours working increases.
