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United Kingdom The GDP per capita gap relative to the upper half of the OECD has been broadly stable. While employment rates have markedly risen since the beginning of the decade, labour productivity growth has halved. Income inequality, as measured by the Gini coefficient, is above the OECD average. Greenhouse gas emissions per capita have decreased in recent years and remain below the average of OECD countries. Limited progress has been made on past priorities. A modest amount of new funding is being allocated to support housing, infrastructure and research and development. Improving adult skills and strengthening work incentives, particularly of low-income workers, would bring large growth dividends in the long term and foster inclusiveness. Exit from the European Union is surrounded by significant uncertainty but may imply a need to reprioritise the main policy recommendations. Growth performance, inequality and environment indicators: United Kingdom A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio
2002-08 1.6 0.1 0.2 -0.1 0.0 1.3 0.6 0.7 0.2
2012-18 1.3 0.9 0.3 0.7 0.0 0.6 0.3 0.2 -0.2
C. The gap in GDP per capita has not changed much Gap to the upper half of OECD countries5 Per cent 0
-5
-10
B. Inequality and environment
3
Gini coefficient Share of national disposable income held by the poorest 20%
GHG emissions per capita4 (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)
Level
Annual variation (percentage points)
2016 35.1 (31.7)*
2013-16 -0.2 (0)*
7 (7.6)*
-0.1 (0)*
2016 7.2 (10.9)* 0.2 (0.3)* 1.0
Average of levels 2010-16 8.4 (11.3)* 0.2 (0.3)* 1.2
-15
-20 GDP per capita
GDP per hour worked -25
Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933955446
ECONOMIC POLICY REFORMS 2019: GOING FOR GROWTH Š OECD 2019