Jacques Bughin, Hans‐Helmut Kotz, Jan Mischke, 22 March 2018

One stark feature of the global economy in the 21st century is the ongoing slowdown of productivity growth. This column explores the key factors behind this trend for several countries around the world. Weak demand is found to be a critical driver of the slowdown by holding back investment and changing the structure of consumption baskets, and through economies of scale effects. Although digitisation offers a potential way back, its benefits will require a strengthening of aggregate demand.

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