Main menu For students For teachers Explore our subjects Student events & courses

Explore

More for students
Sign in

Teaching Economics

In the News

Are zombie firms a drag on the UK economy?

Graham Watson

6th May 2019

Share this content:

KPMG have come up with an interesting assessment of the UK economy. Were it not for low interest rates, they argue that as many as one in seven UK firms would have gone out of business.

And this might go some way towards explaining the ongoing productivity puzzle - the argument being that had these firms gone out of business, 'creative destruction' would have seen other, more dynamic firms take their place. The downside is that any future slowdown could trigger their collapse and severely impact future growth.

Share this content:

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

You might also like

In the News Teaching Activity – What key economic challenges will a new PM face? (June 2026)

29th June 2026

In the News Teaching Activity – How has the vote to Brexit 10 years ago affected the economy? (June 2026)

15th June 2026

In the News Teaching Activity – Does the childcare industry need regulating to reduce hidden costs to parents? (June 2026)

4th June 2026

In the News Teaching Activity – Can creativity turn everyday skills into valuable economic assets? (June 2026)

1st June 2026

Micro and Macro Case Study: Norway and Climate Change

Topical case studies

Macro Case Study: Germany and Energy

Topical case studies

In the News Teaching Activity – What is happening to the number of NEETS in the UK (Mar 2026)

12th March 2026

In the News Teaching Activity – Is the UK economy becoming more productive? (Feb 2026)

19th February 2026