UK economic growth since 2010: is it as bad as it seems?

Publication date: 10 Feb 2015 | Publication type: National Institute Economic Review | Theme: Macroeconomics, Britain & Finance | External Author(s): Crafts, Nicholas | Journal: National Institute Economic Review No. 231 | Publisher: Sage Publications, London

This paper reviews UK supply-side policies since 2010 in terms of their impact on growth and considers medium-term growth prospects in the context of the puzzle of disappointing post-crisis TFP performance. It is argued that there is no reason to believe that growth prospects have deteriorated significantly compared with the pre-crisis period. Changes in policy under the Coalition government are unlikely to have made a big difference to growth potential. On the one hand, this means opportunities for radical reform have been ignored; on the other hand, there has been no repeat of the 1930s’ debacle.