Early estimates forecast the United States productivity growth to accelerate to 1.7 percent this year and would outpace 2007’s growth.
The latest annual productivity report from The Conference Board, a global business research organization, found that the United States will see increased growth despite recession concerns and the credit crunch that has clouded the 2008 economic outlook.
While the increase in growth is welcome, the Conference Board’s report warns that advanced economics need to push its annual productivity growth past 2 percent, and maybe well above 2 percent in the future, to maintain current living standards. To do this, countries must put the onus on technology and innovation to drive growth as the report cites the limits of labor force growth.
