Working Smarter improves Productivity
In the last budget we were given figutres for growth the Chancellopr Mr Hammond quoted from his source at the Office for Budget Responsibiloity (OBR). The OBR is an Independent body.
So productivity growth was down to a 1 percent prediction from 1.8 percent. This is per annum!
So what causes this downward forecast? The writer is not sure.
The OBR have been criticised in the past for overly optomistic forecasts on growth and productivity. Are they now being overly pessimistic?
Other forecasters don’t agree with the OBR or suggest that their estimates are at the lower end of a range of forecast on growth and productivity.
Is Brexit a factor?
The OBR may well be considering Brexit has an impact.
What is our view at Zamu? Let’s be clear our job is assisting businesses to grow, work smarter, more efficiently and improve productivity.
Neil Woodford an award winning Investment Manger agrees with us or should we say we agree with him. Productivity estimates are too low. We read a large research piece done independently pre Brexit . The summary of that report were certain areas will be worse hit than others geographically and certain industries. However, the pessimism stops at the short to medium term of five years pain and then back to business as usual. Woodfords ten-year forecast is 1.6 percent per annum and no adjustment for Brexit.
We think Productivity is a Global issue and not just a UK one. There are steps you can take to assist your business. Work SMART.