5.1 Output per head.

Why is it significant?

Although performance in terms of GDP per head has to be considered in the light of how this output is shared amongst the population and whether it is sustainable, this measure is usually taken as the best indicator of living standards.

How does the UK perform?

When we compare the UK’s relative output per head performance with its international competitors, we can see that the UK is slightly above both the OECD and EU average (5.1.1).  In comparison to the past few years the UK has maintained its position within a group of countries that includes France and Italy.

In terms of output per head growth over the most recent economic cycle, the UK has moved up to second place from last year’s third place, it remains behind the US (5.1.2). 

Chart 5.1.3 shows output per head by region of the UK.  London, the South East and East regions of the UK have higher output per head than the UK average.  Output per head relative to the UK average has increased marginally in London, the South East and East regions since 1989.