A total of six European economies, Including Spain, has the potential to accelerate the annual growth of its productivity by about one percentage point through 2024, more than double the rate seen in the previous decade, where the Spanish rate was 0.8% annually.
This follows from a A report by the McKinsey Global Institute (MGI) Titled `Will productivity and growth return after the COVID-19 crisis? ”, which analyzes the possibility of accelerating productivity growth, with a horizon in 2024, in the United States, France, Germany, Italy, Spain, Sweden and the United Kingdom, seven countries representing 40% of global GDP, taking into account 5,500 companies.
MGI underlined the “boldness” with which companies in all of these countries responded to the shock of the pandemic with measures that revealed the potential for increased productivity, including fast switching of digital channels, Automate the production of tasks, increase operational efficiency, and speed up the decision-making process.
After ensuring that all these countries have the ability to accelerate annual productivity growth By about one percentage point through 2024These forecasts conditioned the continuation of innovation, while also emphasizing the need for business in this line to become public, meaning that more companies are taking measures, especially SMEs, which are the most affected during the crisis.
In addition, I determined that 60% of productivity potential comes from Actions focused on enhancing efficiency, Like automating tasks, rather than growing.
On the other hand, productivity growth depends on strong demand, warned MGI, who pointed to the risk of rising unemployment or inequality, leading to a slowdown in demand.
Increase per capita GDP by 1,500 euros 1500
In the case of Spain, an acceleration of this magnitude represents a An increase of about 1,500 euros in per capita GDP by 2024, according to MGI estimates.
with the epidemic, Spain suffered the largest drop in GDP (-11%) and investment (-12.5%) compared to 2019 for all countries analyzed, followed by Italy and the United Kingdom, while countries such as the United States or Sweden experienced a decline in GDP of about -3.5% and -3%, respectively.
A higher proportion of SMEs than their peers may have contributed to the sharp decline, along with other factors such as the heavy weight of tourism in the Spanish economy, according to MGI.
in 2020 Large distribution chains in Spain saw an overall revenue increase of 3% compared to 2019, while single point of sale businesses saw a revenue decline of 8.5%; Small chains posted a 17% drop, according to data operated by MGI.
innovation and investment
MGI analysis concluded that it is important to move forward on the supply side continue to promote innovation, While ensuring its wider dissemination, bearing in mind that competition in labor and product markets is essential.
In this context, less skilled workers must retrain in order to advance or adopt and benefit from technological progress at higher wages.
On the demand side, it highlights the importance of investment, both by companies, which must be prepared to take advantage of new growth opportunities, identify them and quickly transfer capital and talent, as well as governments, which can contribute through direct investment or by setting appropriate standards to encourage private investment.
75% of companies plan to increase investment in new technologies through 2024, according to responses to the MGI survey, which also advises sustainability, worker training, research and development, and investment as other key areas for investment in infrastructure, particularly affordable housing.
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