1.2 Output per head
Why is it significant?
Although GDP per head is only a measure of a country’s average relative living standard, telling us nothing about how the wealth is distributed between groups or regions, nor the sustainability of output, it 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 exceeded both the OECD and EU average (chart 1.2.1). In comparison to the past few years the UK has maintained its position within a group of countries that includes France, Germany and Italy.
	In terms of output per head growth over the most recent economic cycle (1989-2002), the UK has outperformed all G7 countries (chart 1.2.2).
	Chart 1.2.3 shows output per head by region of the UK. London, the South East and East regions of the UK had higher output per head than the UK average in 2002. The data shows a widening of regional disparities over the last decade.