Flash: Labor productivity divergence in Europe – Goldman Sachs

FXstreet.com (New York) - According to the Economics Research Team at Goldman Sachs, “In recent years labor productivity growth – measured as output per hour worked – has been exceptionally weak in some European economies.”

Indeed, since the first quarter of 2008, labor productivity has fallen by around 0.5% in Germany and by 4.0% in the UK. However, “the performance of productivity has been very different in peripheral economies. Labor productivity has risen by over 10% in Spain and by more than 8% in Ireland and Portugal over the same period. This points to a significant divergence in labor productivity trends across Europe during the financial crisis.” The team adds.