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Will the UK economy continue to outperform?

One of the key questions faced by the Office for Budget Responsibility in producing its economic forecasts for this week’s Autumn Statement is whether the recent outperformance of the UK economy compared to the rest of the G7 can be sustained.

While the UK managed to outperform its peers for a sustained period in the 1990s and early 2000s, one of the key drivers of that growth spurt is absent now. And while the larger amount of spare capacity in the UK economy than overseas at present suggests that a period of comparatively strong GDP growth should occur eventually, the UK still possesses some disadvantages that may prevent it from remaining at the very top of the G7 growth leader board.

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