Productivity slow-down causing some concern.
Position | Economics - Brief article |
U.S. and European productivity growth was relatively slow in 2006, according to an annual analysis of global trends by The Conference Board, New York, raising concerns about the long-term effects of information and communication technology (ICT) as a continued impetus for productivity growth. The U.S.'s 2006 numbers were the lowest in more than a decade and, despite a strong business cycle, the enlarged European Union saw modest gains of only 1.5%.
"Over the past decade, information and communication technology has been a key driver of global productivity growth but, with these latest numbers, one begins to wonder whether ICT's contribution has peaked," says Bart van Ark, director of International Economic Research. "The significant fall in U.S. productivity growth is unlikely to be purely cyclical, and the modest European revival of productivity also points to the limited impact of technological change and patchy liberalization of product and labor markets in many countries."
However, according to the...
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