Why is the UK’s economic growth falling behind?
Brian Albrecht, chief economist at ICLE, shared perspective in this Money Week article exploring challenges to the UK’s economic growth. Read the full article here.
Many of the most important levers behind growth may be difficult for government to influence because they rely on firms and their management, and, crucially, what they spend their money on. In this area of business change and innovation, several new ideas and discussions have emerged in recent months that are worth digging into. Take AI. This whole niche within technology tends to prompt breathless statements. Typical of this is a recent article from the US by Brian Albrecht, chief economist at the International Centre for Law & Economics.
He argues that “we are on the verge of an AI-driven boom… the data suggest we could get back to the kind of productivity growth we saw during the IT boom of the late 1990s and early 2000s”. He reckons we may be underestimating productivity growth by as much as 0.5% of GDP because of mismeasured AI investments alone.