|2.1 Business Investment|
|Why is it significant?|
Investment in physical assets plays a key role in generating economic growth.
|How does the UK perform?|
The UK continues to suffer from low levels of capital investment. Over the most recent cycle, business investment per worker remained lower than all G7 countries apart from Germany
(chart 2.1.1). The persistence of this under-investment over the past thirty years has resulted in a significant deficit of capital available to each UK worker.
|Chart 2.1.2 shows that the UK has failed to make much progress in closing this shortfall in business investment per worker over the last economic cycle.|