Viewpoints

Productivity Awakening: It Takes Two to Tango

For microeconomic advances to unleash a productivity rebound economywide, the macroeconomics must cooperate.

In our latest Secular Outlook, we highlighted the rising potential for an innovation-driven productivity rebound in the coming years. We think productivity, after a decade-long slump, may be driven higher by a host of new technologies spreading throughout the economy. However, for microeconomic advances to unleash a productivity rebound economywide, the macroeconomics must cooperate: It takes two to tango. In recent years, several key macro headwinds – mostly demand-side factors and hangover effects from the 2008−2009 global financial crisis – have stood in the way. This may be about to change.

SLUMPING PRODUCTIVITY – WHY EVERYWHERE AT ONCE?

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The Author

Matthew Tracey

Account Manager, Financial Institutions Group

Joachim Fels

Global Economic Advisor

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