Background paper

Background paper: Labour productivity growth in the Treasury's fiscal projections

Formats and related files

This background paper accompanies the Half Year Economic and Fiscal Update, which was released on 11 December 2019.

It reviews a range of factors influencing the labour productivity growth assumption in the Treasury's Fiscal Strategy Model (FSM) and the Long-Term Fiscal Model (LTFM). This assumption is relevant for both the regular FSM fiscal projections prepared alongside the Economic and Fiscal Update (EFU), and the Long-Term Fiscal Statement (LTFS), due in 2020, which uses the LTFM.