LONDON (AFX) - The UK economy is in good health with high foreign investment levels, but low productivity levels and workforce skills are a problem, according to a trade and industry department report released today.
"We have been rewarded by record inflows of foreign investment, bringing the total stock of inward investment to over 300 bln stg," trade minister Stephen Byers said.
"This report has highlighted the need to remove obstacles to enterprise and entrepreneurship in all parts of the country, to address the skills shortage in our workforce, and to raise educational standards for all," he added.
Foreign direct investment into Britain as a percentage of GDP is the highest among the G7 industrialised nations, the report says. The value of inward investment for 1999 represented 27.4 pct of GDP.
On the downside, the ministry reported, productivity is significantly lower than the G7 average. In terms of output per worker the United States is 45 pct ahead of Britain.
Another problem was Britain's "basic and vocational skills performance" was deemed "significantly lower" than in other G7 countries. Seven million adults in England have poor literacy and numeracy skills and only 37 pct of the workforce have decent school leavers' exam qualifications, compared with 74 pct in Germany, according to the report.