On June 12, Morgan Stanley economist Bruna Skarica noted in a report that the UK's monthly GDP appears to be benefiting once again from the strong performance of the white-collar service sector, particularly in the information and communication technology (ICT) industry. She pointed out that the industry's output is currently growing by 6.7% year-on-year, and has increased by 45.4% since the fourth quarter of 2019, while the overall economy's value added has only grown by 6% during the same period. "The sectors most affected by the rapid proliferation of artificial intelligence are simultaneously driving GDP growth and productivity improvements, which seems far from coincidental," Skarica added. Given that the Bank of England indicated last year that the UK's structural productivity growth is negative, the bank should provide more commentary on this matter this year.
All Comments