Annual Productivity Growth in Selected Countries	Print Indicator (96K)

Productivity is growing faster in China and India than in many other countries including the United States.

Why is this indicator important?

• Productivity growth occurs when there is growth in output not attributable to growth in inputs (such as labor, capital and natural resources).
• This type of growth is often associated with technological innovation, for example, the diffusion of information and communications technologies across industries and sectors of the economy.

Key Observations

• China has been the productivity growth rate leader for the past decade, with productivity growth of 8.7% per year, on average, since 2000, though India has increased to roughly 6.5% per year in 2005-2006.

Related Discussion

• While growth in productivity has slowed in the United States in recent years, growth in labor inputs has increased, in part offsetting productivity as a contributor to GDP growth.