Belgian industry sees productivity decline
Labour productivity growth in Belgium continues to slow down. The country's industry has even seen productivity growth decline in recent years, according to the latest report published on Thursday by the National Productivity Board (NPB).
Between 2000 and 2023, Belgian productivity had an annual growth rate of 0.7 per cent. In the last five years, however, it has only grown by 0.5 per cent. This decline in growth is not unique to Belgium and can be observed across the euro area, the NPB said.
"The trending decline in labour productivity gains, which started at the end of the 1970s and accelerated after the global financial crisis of 2008, has been exacerbated by the recent succession of crises," the report says, referring to the Covid-19 pandemic and the energy crisis.
"The trending decline in labour productivity gains (...) has been exacerbated by the recent succession of crises"
Belgium's industry, however, saw productivity fall between 2019 and 2023, at an annual rate of 0.3 per cent. This is mainly due to a decline in value added and hours worked. Of the 13 manufacturing sub-sectors, six experienced a fall in productivity, with the largest in chemicals (8.9 per cent) and metals (5.3 per cent).
The NPB says that productivity growth is crucial, "not only as an important condition for real income growth" but also to reduce the costs of Belgium's ageing population.
To support productivity growth, the board argues for a "coherent policy that facilitates the widespread use of AI" in order to "fully reap its productivity benefits". Second, public investment remains necessary, the board says, in particular to enable Belgium's green and digital transition.
#FlandersNewsService | © BELGA PHOTO JAMES ARTHUR GEKIERE
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