Sluggish productivity could be costing the UK nearly £500bn, as the country continues to tail behind most of its G7 counterparts, figures out today have found.
According to the study by Grant Thornton, UK GVA could be boosted by £479bn by 2025 if workers' productivity across the country matched the G7 average.
According to figures released by the Office for National Statistics last September, output per worker in the UK was 20 percentage points behind the G7 average in 2014.
In particular, Grant Thornton found that focusing on international markets and boosting the UK's level of exports from 17 per cent to 45 per cent of GDP – the latter being the figure achieved by Germany – would add £84bn to the economy's bottom line.
Meanwhile, filling all of the job vacancies currently empty because of skills shortages would generate £8.9bn.
In light of the figures, Grant Thornton is today launching an 18-month long inquiry into what needs to be done to help bolster the UK's economy and help create the extra £479bn.
"Today’s research has revealed significant potential across the UK," said Sacha Romanovitch, chief executive of Grant Thornton UK. "We believe that addressing at root some of the UK’s fundamental social and economic challenges collaboratively can create vibrant cities and communities across the UK, where businesses and people can flourish."