"Figures from the Organisation for Economic Co-operation and Development show that total investment, combining both public and private spending, stood at just 18.6 per cent of GDP in the third quarter of the year. That leaves the UK trailing all other G7 nations, including the United States, Germany, France and Japan. The data underlines a long-running weakness in the British economy."
"The UK has recorded the lowest investment rate in the G7 in 23 of the past 31 years, a factor widely blamed for poor productivity growth and weak long-term economic performance. By comparison, Japan recorded the highest investment rate among the G7 at 27 per cent, while Germany, despite being in a two-year recession, invested around 20 per cent of GDP over the same period."
"Economists at PwC estimate that public investment will rise by £13 billion in 2026-27, marking the largest two-year increase since the 2008 financial crisis. However, there are growing concerns that this surge in government spending will not be matched by the private sector. PwC's chief economist, Barret Kupelian, warned that private investment is expected to stagnate due to weaker business confidence and slower profit growth."
Total investment in the UK, combining public and private spending, stood at 18.6% of GDP in the third quarter, the lowest among G7 nations. The UK has recorded the lowest investment rate in the G7 in 23 of the past 31 years, undermining productivity growth and long-term economic performance. Japan invested about 27% of GDP and Germany around 20% over the same period. Labour plans large increases in public capital spending on infrastructure, transport and housebuilding, with PwC estimating a £13 billion rise in 2026-27. PwC warns private investment is likely to stagnate amid weak business confidence and slower profit growth. EY estimates up to 1,000 major investment projects are planned to start or complete by 2040.
Read at Business Matters
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