AI TRENDS | Morgan Stanley Notes UK ICT Output Growth Alongside Stronger GDP and Productivity

Morgan Stanley economist Bruna Skarica said the UK’s monthly GDP appeared to be benefiting again from strong performance in white-collar services, particularly the information and communications technology (ICT) sector. According to Jin10, Skarica wrote in a report that ICT output was up 6.7% year over year, and had risen 45.4% since the fourth quarter of 2019, while value added for the overall economy increased 6% over the same period. She said industries most exposed to the rapid adoption of artificial intelligence were also contributing to GDP growth and productivity gains, adding that this did not appear to be entirely coincidental. Skarica added that, given the Bank of England said last year that the UK’s structural productivity growth was negative, the central bank should provide more commentary on the issue this year.