Source · Select Committees · Treasury Committee
Recommendation 1
1
Paragraph: 16
Though the structure of the UK economy makes it potentially more vulnerable to the present...
Conclusion
Though the structure of the UK economy makes it potentially more vulnerable to the present shock, the Committee notes that comparisons with other countries’ GDP may also be affected by differing measurement methodologies. We therefore caution against over-reliance on the UK’s GDP performance in comparison to other countries, as a measure of the impact of coronavirus on the economy.
Paragraph Reference:
16
Government Response
Acknowledged
HM Government
Acknowledged
In your report, you recommend that the Treasury and the Office for Budget Responsibility provide a commentary at the time of the Budget on the use of GDP as a measure of the impact of COVID-19, and the implications that these measurement issues have for comparisons between the UK and other countries. The Government has addressed this recommendation in the Budget, which features a commentary on international comparisons of economic performance and the use of GDP as a measure. This can be found across pages 11 and 12 of the Budget document.1