UK's 'lost decade' of economic stagnation
Britain is facing a lost decade of economic growth despite the economic recovery, the latest forecasts from a respected think tank suggest today.
The National Institute of Economic and Social Research (NIESR) said that although it expects relatively strong GDP growth over the coming years, it thinks output per head of population will grow more slowly.
The think tank said per capita GDP will not return to its 2007 peak until 2017, implying 10 years of economic stagnation in Britain, according to this particular economic measure.
Many economists argue that GDP per head is a better measure of economic performance than GDP because it takes into account population growth.
The forecast represents a challenge to the claims of supporters of the coalition that the economy has been restored to health and that living standards will soon begin to rise.