UK productivity estimates must be 'significantly' lowered, admits OBR

Government's independent forecaster says average 0.2% growth in productivity over past five years is more accurate than 1.6%

The government's independent economic forecaster has admitted it will need to "significantly" lower its estimates for the productivity of UK workers after a decade of stagnant growth since the financial crisis.

In an assessment of its record of predicting the path of the economy, the Office for Budget Responsibility said the average rate of productivity growth of 0.2% over the past five years was a better guide for 2017 than its forecast of 1.6% in March.

Related: OBR finally forced to admit UK's productivity hasn't bounced back | Phillip Inman