The Guardian view on productivity: Britain must solve the puzzle | Editorial

Brexit makes improving the performance of UK firms essential. The state needs to meet the challenge if the private sector won't

No developed country has been immune to the slowdown in productivity growth since the financial crisis, but Britain has been particularly hard hit. Instead of productivity rising by around 2% a year, as was customary before 2007, more workers have been employed to produce virtually the same output.

International comparisons show that the US, Germany and France are at least 20% more productive than the UK, and the gaps show no sign of closing after a lost decade that has left productivity 15% below where it would have been had the pre-2007 trend continued. Put another way, the economy would be in the region of 250bn bigger - and living standards markedly higher - had productivity growth not collapsed.