Productivity

Meeting: 
MQT on 2014-09-17
Session date: 
September 17, 2014
Reference: 
2014/3461
Question By: 
Fiona Twycross
Organisation: 
Labour Group
Asked Of: 
The Mayor
Category: 

Question

What assessment do you make of economic productivity levels in London?

Answer

Answer for Productivity

Answer for Productivity

Answered By: 
The Mayor

The GLA continuously assesses London's economic productivity and its drivers through its monitoring of the macroeconomic environment (see, for example, 'London's Economy Today' and 'London's Economic Outlook' publications) and to support a number of policy areas, such as the London Plan and the work of the London Enterprise Panel for instance (see, for example, 'The Economic Evidence Base' and London's Labour Market Projections by GLA Economics).

London's productivity remains higher than the UK average. However, growth in productivity in both London and the UK has slowed over the last few years - the 'productivity puzzle'. Many respected bodies, including the ONS, Bank of England, OBR and IFS, have been working to understand the recent path of productivity and there is still no consensus on it. As such, it is too early to be able to make an informed assessment on the causes of the recent slowdown in productivity growth but it is something that GLA Economics is closely monitoring.