Rising EU productivity still lags behind U.S.
Position | Economics - Brief Article |
The European Union, spurred by gains in both its old and newest members, has registered rising productivity growth, but still significantly trails the U.S., reports a study by The Conference Board, New York. Productivity in the EU-25 nation bloc grew from 1.3% to 1.6% in 2004 and labor input growth increased from an anemic minus-.2% to .7%.
"The turnaround in 2004 in both productivity and employment growth is welcome news for the EU," states Bart van Ark, consulting director at The Conference Board and a co-author of the report with Robert McGuckin, director of economic research.
"If Europe, the world's second largest economy, is going to provide the leadership and drive needed for global prosperity as stated in its Lisbon goals, the 2004 results must be sustained and improved upon. Although the European GDP [gross domestic product] growth was about 2.3% in 2004, this lags behind the growth rates achieved in the U.S. and Japan and is far below the growth rates registered in...
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