The UK productivity puzzle through the magnifying glass: A sectoral perspective

Rafał Kierzenkowski, Gabriel Machlica and Gabor Fulop, Economics Department. Labour productivity has flatlined since the global financial crisis, which contrasts with its recovery profiles from past recessions over the last decades (Figure 1).  The productivity shortfall, defined as the gap between actual productivity and the level implied by its pre-crisis trend growth rate, reached nearly 20% … More The UK productivity puzzle through the magnifying glass: A sectoral perspective

Unblocking the productivity potential of local businesses in Ireland

By Yosuke Jin and Ben Westmore, Ireland Desk, OECD Economics Department. Irish GDP growth made headlines recently due to enormous upward revisions (e.g. + 25.6% for the sole year of 2015) related to the activities of a small group of multinationals. This raises the question of how much Irish productivity relies on multinational companies alone. … More Unblocking the productivity potential of local businesses in Ireland

Thailand 4.0: boosting productivity

By Hidekatsu Asada, Head of South East Asia Desk, Economics Department. Thailand has made commendable socio-economic progress since the 1970s and has set itself the goal of joining the group of high-income countries by 2036. To make that happen, the government has spelled out a Thailand 4.0 vision that involves a transformation to a more … More Thailand 4.0: boosting productivity

Mind the gaps: boosting productivity and reducing inequality in Chile

Antoine Goujard and Paula Garda, OECD Economics Department, Chile/Colombia desk Chile has been one of the fastest-growing economies in the OECD in recent decades. Sound macroeconomic management, bold structural reforms, such as trade and investment liberalisation, and buoyant natural-resource sectors, supported fast convergence in living standards (Panel A). However, progress has slowed: declining productivity gains … More Mind the gaps: boosting productivity and reducing inequality in Chile

Switzerland’s productivity puzzle: Being a leader and an underperformer

by Patrice Ollivaud, Economist, Switzerland Desk, OECD Economics Department Switzerland is among the leaders in many global rankings including on R&D, innovation, infrastructure, universities and competitiveness. It is well integrated in global value chains, specialised in some high-value-added activities and home of many large multinationals. These factors should contribute to high, and rising, labour productivity. … More Switzerland’s productivity puzzle: Being a leader and an underperformer

Zombie firms and weak productivity: what role for policy?

by Dan Andrews, Müge Adalet McGowan and Valentine Millot, Productivity Workstream, OECD Economics Department Weak productivity growth is a major problem afflicting our societies. It curbs growth in incomes and endangers the sustainability of our social security systems. An important, but often ignored, source of the productivity slowdown is the increasing prevalence of weakly productive firms … More Zombie firms and weak productivity: what role for policy?

Latvia: time to reboot inclusive productivity growth

by Andrés Fuentes Hutfilter and Naomitsu Yashiro, Latvia Desk, OECD Economics Department Latvia’s economy is growing strongly. Driven by the recovery of exports and investment as well as strong private consumption, real GDP growth is expected to strengthen from 2% in 2016 to around 4% this year and next. Exporters have gained market shares. More disbursement … More Latvia: time to reboot inclusive productivity growth

Lifting New Zealand’s game on productivity

by Andrew Barker, New Zealand Desk, OECD Economics Department Productivity growth will be the main driver of global economic growth and prosperity over the coming decades. For New Zealand, this represents both a challenge and an opportunity, as NZ productivity is below that of leading OECD countries (Figure 1). This problem is not new, and … More Lifting New Zealand’s game on productivity

Japan needs policies to boost productivity for inclusive growth

by Randall Jones, Head of Japan Desk, OECD Economics Department Labour productivity in Japan is about a quarter below the average of the top half of OECD countries (Figure 1), which is surprising given Japan’s outstanding performance in education and skills and high level of R&D spending. As in other countries, the labour productivity gap … More Japan needs policies to boost productivity for inclusive growth

The Best vs. the Rest: The Global Productivity Slowdown Hides an Increasing Performance Gap across Firms

By Dan Andrews (Senior Economist, Economics Department), Chiara Criscuolo (Senior Economist, Directorate for Science, Technology and Innovation) and Peter Gal (Economist, Economics Department) Well-known global companies such as Google, Apple and Amazon of the digital era as well as more traditional ones of the likes of BMW, L’Oreal and Nestlé have recorded impressive productivity gains over the … More The Best vs. the Rest: The Global Productivity Slowdown Hides an Increasing Performance Gap across Firms