For the next prime minister to solve the UK’s productivity problem, they must attract more foreign investment – here’s how

By Costas Milas, Professor of Finance, University of Liverpool

The British economy has a serious productivity problem that will have to be addressed by the next government. According to data from the OECD (the Organisation for Economic Co-operation and Development), productivity measured as GDP per hour worked in the UK only rose 4% between 2015 and 2022. The average increase across all 43 OECD countries over the same period was 7%.

The UK is also in the bottom 30% for productivity among all OECD economies and shows no signs of improving. The

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