Britain’s ‘unspectacular’ economic growth since 2010 has been ‘flattered’ by a booming population largely driven by increased migration, new report finds

Britain’s economic growth since 2010 has been ‘flattered’ by a booming population, largely driven by increased migration, according to a new report.

The Resolution Foundation, which is politically independent, warned of “appalling” productivity levels in a grim assessment of the situation British economy.

In an analysis of British economic growth over the past fourteen years – in a report entitled ‘Life in the Slow Lane’ – the think tank said Britain was ‘middle of the pack’.

As a result, Britain had grown faster than Germany, France, Italy And Japanbut slower than the US and Canada amid G7 economies.

But the think tank also stated: ‘This solid, if unspectacular, GDP performance is flattered by a thriving population, which has grown by 0.7 percent per year since 2010, equating to an additional six million people.

‘This is the fastest population growth Britain has seen in a century, with three-quarters of that due to migration.’

The Resolution Foundation said an assessment of GDP per capita, which takes into account population growth, has shown Britain’s overall and relative economic performance to be ‘much worse’.

The report shows that GDP per capita has grown by only 4.3 percent overall over the past sixteen years, compared to 46 percent in the previous sixteen years.

Britain’s economic growth since 2010 has been ‘flattered’ by a booming population driven largely by increased migration, according to a new report from the Resolution Foundation.

The think tank warned of ‘poor’ productivity levels in a bleak assessment of the UK economy

According to the report, an assessment of GDP per capita, which accounts for population growth, has found that Britain’s overall and relative economic performance is ‘much worse’.

In an analysis of British economic growth over the past fourteen years – in a report entitled ‘Life in the Slow Lane’ – the think tank said Britain had been ‘middle of the pack’.

The think tank warned that the ’employment growth that boosted growth in the 2010s is unlikely to be repeated’ and that migration levels are expected to fall in coming years.

“Instead, Britain’s future economic growth will have to come from addressing its long-standing weakness in productivity and leveraging its long-standing strengths in the services sector,” it added .

The Office for Budget Responsibility said earlier this year that it now expects net migration to average around 350,000 per year over the next five years, following a record 745,000 in 2022.

Tory colleague David Willetts, chairman of the Resolution Foundation, said: ‘Our report shows that raw GDP growth figures overstate our performance because the population has risen.

‘GDP per capita growth is far too low. We must boost investment to grow the economy and the party manifestos must recognize how serious the problem is and show how we can tackle it.”

Lord Willetts warned neither the Conservatives nor Labor have “not really tackled this challenge so far” in their general election campaigns ahead of the July 4 election.

Greg Thwaites, research director at the think tank, said: ‘The economy is at the heart of the election campaign, and Britain’s economic performance is frankly average when it comes to GDP growth.

‘But beneath this middle-of-the-pack position lie some important strengths and weaknesses that will be key to Britain’s future economic performance.

‘Britain’s mediocre growth is underpinned by a booming population.

‘The extra six million people in Britain have certainly made the economy bigger, but have contributed little to GDP per head.

‘In fact, Britain’s performance in productivity – which really matters for living standards – is exceptionally poor.

‘There is broad consensus on the need to improve Britain’s productivity figures, and that is much easier to talk about than to deliver.

‘But if the next government is looking for encouragement, it should look to build on Britain’s already booming services exports, which could really go gangbusters over the next decade.’