Britain nears bottom of the heap for economic growth potential: Economist

Potential output, a mixture of productivity and workforce growth, is a measure of how fast an economy can expand before generating inflation

Britain’s growth potential has fallen behind every large economy except Mexico due to collapsing productivity and severe labor market shortages, according to former Bank of England rate-setter Michael Saunders.

Saunders, who finished his term at the UK central bank in August and is now senior economic adviser at Oxford Economics, said his analysis of 43 country forecasts by the Organization for Economic Cooperation and Development showed the UK’s economic “speed limit” will be the second lowest in the group for the period from 2020 to 2024.

Potential output, a mixture of productivity and workforce growth, is a measure of how fast an