Snapshot of Eurozone inflation falls to 5.5% in sharp contrast to UK. Economists put reason for divergence down to Brexit and Britain’s energy price guarantee.

  • emerty@feddit.uk
    link
    fedilink
    arrow-up
    1
    ·
    edit-2
    1 year ago

    Yeah, sounds unlikely doesn’t it?

    But that’s what the forecast says. 4% of productivity lost over the long term of 15 years due to loss of comparative advantage

    https://obr.uk/forecasts-in-depth/the-economy-forecast/brexit-analysis

    But the forecast is for the cost, no benefit is included.

    The loss of comparative advantage is replaced, I’d argue, with competitive advantage which has a much stronger effect. The UK is no longer bound by the anti science regulations on genetic engineering and the new overly restrictive proposed regulations on AI

    GDP per capita is a ratio of GDP / population, so if you do more with fewer people, by using automation, robots and AI, your GDP per capita will grow…

    The 4% figure over 15 years is a difference of 0.29% to 0.27% productivity growth. Government policy has at least that 0.02% effect

    I predict a Starmer govt will be able to introduce policy that will offset the productivity loss just by investing in renewable energy, let alone any research universities’ innovations.