HM Treasury

Enterprise & productivity

Investment

Empirical studies show that levels of physical capital stock are closely correlated with productivity performance. The UK has long suffered from under-investment and is today significantly less capital intensive than its main competitors. The unexpected severity of the world economic slowdown will clearly impact on investment levels in the short term, although strong economic fundamentals are expected to give rise to an acceleration in investment as the global economic recovery gathers pace.

Enterprise and Productivity index 

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