Andy Haldane, the Bank of England's chief economist, said last year that the economy "appears to be writhing in both agony and ecstasy." While the economy was growing at a faster rate that most of its rich counterparts, most people weren't benefiting from this because real wages were falling, and productivity, or output per hour work, remained stagnant.
Since then, wage growth has crept above inflation, and economists think this will continue for the rest of the year. However, this is largely due inflation, which fell to an all-time low of 0.3 per cent last month, and side from this productivity growth is still lagging.
But Paris-based think-tank the Organisation for Economic Co-operation and Development, has been largely pleased by its performance. It said economic growth and the employment rate remains strong, and future focus should be on giving productivity a much-needed boost.
- Economic growth is strong
The OECD said that economic growth has returned to pre-crisis levels and growth has been broadening. This has been helped by loose monetary policy, measures to lift the housing market and fiscal policy. Structural reforms have boosted work incentives, as well as supporting a business friendly environment. The charts show economic growth has outpaced that of France and Germany, while the category of components that drive it (consumption, investment and exports) are expanding.