Labour productivity continues to fall in the UK, today’s latest ONS release shows.
Output per hour dropped by 0.2% in Quarter 3, 2012, compared to the previous quarter. This means a fall of over 2% compared to the same period last year and over 3% compared to the pre-crisis period. This is a particularly striking drop considering than in the five years before the financial crisis labour productivity rose by over 12%.
The reasons for this remain rather a puzzle. And a look at other European countries confirms that the UK is unusual. But it’s not unique. Most core European countries had a drop in productivity levels compared to those in the US. But their performance varied considerably during the last few years of economic crisis, as this chart highlights … Read more
At the start of this year, Mario Monti, the Italian prime minister, unveiled a programme of liberalisation, which together with austerity measures were meant to put the country back on track for growth.
The package triggered protests from taxi drivers, pharmacists, petrol station operators and lawyers – all professions that were included in the liberalisation plan. The measures also targeted the gas and electricity market, the insurance sector and local public services. The aims of these plans were to reduce the costs of goods and services to consumers and to foster competition among providers, with cheaper products and services making the austerity measures easier to digest.
Chinese exports grew less than expected in November, fueling fears of a further economic slowdown. But exports from western inland Chinese regions have never grown so fast as in 2012, beating export growth rates of the rich industrial coastal regions.
Chinese export growth declined to 2.9 per cent in November from 11.6 per cent in October. On a rolling 12-month sum exports grew at an annual rate of 7.9 per cent in November, a figure well below the more than 30 per cent growth of the late 2010 and early 2011 and marks a 28-month record low. But not all regions in China experienced the same slowdown.