With the total size of the global economy estimated at $105 trillion in 2022 (£85 trillion) in cash terms by the International Monetary Fund (IMF) and G20 economies including China and the US currently estimated to account for 85pc of this, it suggests more than £700bn could be wiped off the global economy in the long term.
Ms Lombardelli added: “This will last for decades to come.”
Referring to work published by the OECD last year, the former chief economic adviser to the UK Treasury added the reduction in growth was probably a “minimum” estimate with “greater impacts beyond this”.
She said: “There are many wider positive impacts of education not captured in this analysis such as the positive impact of education on health. It does not capture increasing technology which we know makes education and skills even more important and so the effects will likely be greater.”
The warning comes just months after the OECD warned that post-pandemic maths and science test scores among British pupils had fallen to the lowest level since records began in 2006, while reading proficiency has fallen to a level last seen in 2009.
The results of the internationally-respected research, known as the Programme for International Student Assessment (PISA), was described in its latest economic outlook on Monday as “particularly concerning” for global growth prospects.
The OECD added: “School closures during the pandemic may have contributed to the recent drop in test scores, particularly for disadvantaged students who were unable to benefit fully from online teaching.”
The organisation urged countries to invest more in teaching quality and teachers’ qualifications as it highlighted a longer term decline in educational attainment.
Productivity growth is crucial for rising living standards because wages can only sustainably rise faster than prices when workers generate more output.
The OECD’s stark warning came as it urged countries around the world to do more to support disadvantaged students as well as expanding vocational education and lifelong learning as technological advances threaten to destroy more jobs.
It also warned that inflation was likely to remain higher and more stubborn in the UK than in any other major advanced economy.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
