Why Productivity Growth May Be Poised to Recover

Article source
Wall Street Journal

Weak productivity growth has been a head-scratcher for economists in recent years, but a new study argues the tide is poised to turn, and the next wave will be driven by digitization.

The diffusion of new technologies into everyday use holds promise for bringing back the kinds of annual 2% productivity growth seen in the past but digitization is still at an early stage in many industries, according to the latest study from the McKinsey Global Institute.

Looking at the past half-century, it estimates the time from commercial availability of new technologies to 90% adoption ranges from about eight to 28 years.

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