UK Economy - Causes and Consequences of Low Investment

The UK has one of the lowest capital investment to GDP ratios among leading high-income countries. Capital investment as a share of GDP was just 17% in 2022. In February 2022, the then Chancellor Rishi Sunak was quoted as saying “The lower level of capital investment we see by UK businesses ... is a pervasive economy-wide issue, it has been persistent for decades, and we must fix it to improve productivity, growth, and living standards.” In this new revision video we look at some of the causes and consequences of low capital investment in the UK economy.