The keen new chancellor, John Healey, responded to last week’s better-than-expected economic news by claiming the government was “bringing hope back”. Growth did not plunge as feared after Donald Trump unleashed war on Iran – with GDP expanding at a pretty decent 0.4% in the second quarter.
But what if we should have held on to a bit more hope all along? A new assessment of the UK’s recent productivity suggests this critical measure of the country’s economic strength may have been systematically underestimated.
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