‘Boost Productivity To Strengthen Growth’

Mr.  GurriaEmerging economies must boost their labour productivity in order to reach income levels comparable with developed countries, according to a report released by the Organisation for Economic Co-operation and Development (OECD) yesterday.

“Boosting productivity will be the key to boosting growth,” OECD Secretary-General, Angel Gurria said during a press conference. “Based on recent trends, many middle-income countries are not growing fast enough to reach average income levels in the OECD countries by 2050.”

The OECD measures labour productivity as national gross domestic product (GDP) divided by the number of people employed.

According to the most recent statistics, average productivity in the OECD zone is $86,000 compared to $21,600 in the BRICS countries, which include Brazil, Russia, India, China and South Africa.

These countries were growing at an average rate of 6.3 per cent annually prior to the economic crisis of 2008, but that rate has fallen to 5.3 per cent since and is expected to fall further to 4.7 per cent.

China is expected to continue to have an annual labour productivity growth rate of 10 per cent.

In order to counteract sluggish growth rates, middle-income countries should emphasise economic diversification and consistent regulation, the OECD said. —GNA

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