As an economist, the latest report from the Organisation for Economic Co-operation and Development (OECD) that called for increased investment to boost economic growth and noted weak investment is hampering job creation should hardly come as a surprise.
Most recent figures indicate that UK economic growth has halved in the three months to the end of March, continuing a slowdown that began six months ago, demonstrating how unsustainable the recovery – which is heavily reliant on consumer spending and levels of household debt relative to income – actually is.
When it comes to total private- and public-sector investment, the UK’s record is appalling, coming in 32nd position out of the 35 most advanced economies in the world, a significant concern when it comes to the future prospects of the economy.
There needs to be a radical change in mindset and a focus on increasing both public- and private-sector investment, through modest public spending increases and additional borrowing. This will see the deficit and the debt being cut, but on the back of sustainable economic growth.
Without such an approach the fragile foundations on which the economic recovery is currently based will quickly crumble.