World productivity returns to solid growth in 2010 with headwinds ahead

The world economy returned to solid productivity growth in 2010, as the gross domestic products (GDP) in most countries recovered strongly from the financial crisis and economic downturn, while employment lagged behind, the Conference Board, a leading independent global business membership and research association, announced on Monday.

"While advanced regions left recession firmly in the rearview mirror, emerging economies continue to drive both global growth and global productivity growth," it said in a report.

"Global productivity growth has recovered remarkably well following the economic and financial crisis," said Bart van Ark, senior vice president and chief economist of the agency. "It remains to be seen whether global productivity growth will return to its pre-recession trend as employment picks up momentum in 2011. "

Advanced economies saw an above-trend recovery in labor productivity growth in 2010 but this is expected to decelerate in 2011. Among emerging economies, China and India remained the largest and most dynamic economies in productivity terms, with respective productivity growth of 8.7 percent and 5.4 percent in 2010, contended the Conference Board.
(Source:xinhua)