Global Productivity Returned To Solid Growth In 2010

The world economy returned to solid productivity growth in 2010, as GDP in most countries recovered strongly from the 2008/09 financial and economic crisis, while employment lagged behind, The Conference Board reported today.

The U.S. economy remained on a higher productivity growth path than Europe in 2010, but their productivity growth rates may converge, at least temporarily, in 2011 as U.S. employment picks up momentum. Global productivity growth may moderate slightly in 2011 as cyclical effects abate.

"Global productivity growth has recovered remarkably well following the economic and financial crisis," said Bart van Ark, Senior Vice President and Chief Economist of The Conference Board. "It remains to be seen whether global productivity growth will return to its pre-recession trend as employment picks up momentum in 2011."

"U.S. productivity growth will be tempered briefly in 2011 as employment recovers from its major recession cutbacks but that’s temporary – the underlying productivity growth trend in the United States remains stronger than it is in Europe."

Other highlights from the report include:

*As cyclical effects abate, advanced economies’ productivity gains from 2010 will moderate slightly in 2011. Advanced economies saw an above-trend recovery in labor-productivity growth in 2010 but this is projected to decelerate in 2011.

*Among emerging countries, China and India remain the largest and most dynamic economies in productivity terms, with respective productivity growth of 8.7 percent and 5.4 percent in 2010.

*In 2010, Turkey’s productivity growth jumped, Brazil outperformed the Latin American region as a whole, and Russia’s productivity growth recovered remarkably.