The April issue of The Fleet Street Letter went to the printer yesterday. In March, Charlie Morris (the investment director of The Fleet Street Letter) showed UK investors why China has to reform to keep getting rich. In the April report, Charlie tackled the single biggest obstacle for the UK economy.
Can you guess what it is? Is it taxes? Is it the debt? Is it labour costs? It’s none of those things. According to Charlie, and supported in today’s release from the Office of Budget Responsibility (OBR). It’s productivity.
The UK has hit a productivity wall. Without improvements, it’s not going to grow. And it’s not going to get a lot wealthier. The OBR showed the chart below. It shows that productivity grew much faster in the last thirty years of the 20th century than it has in the first 15 years of the 21st century. We’ve hit the wall.
Charlie has the answer to the problem. And indirectly, the solution is already part of his two-pronged portfolio strategy. He’s making some notes on it. I’ll report tomorrow on what he’s said.
Category: Economics