The evidence suggests that the recent pick-up in euro-zone productivity growth was probably a temporary reflection of the cyclical strength of the economy rather than a permanent or structural development. We suspect that the region’s sustainable rate of productivity growth remains around its long-run average of 1º% y/y. Nonetheless, with a rising workforce participation rate and falling sustainable rate of unemployment still having a positive impact, the economy’s potential growth rate should remain close to 2% in the next few years.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services