Productivity growth is crucial for future broader prosperity
The Netherlands faces a productivity paradox: while labour productivity levels are high, productivity growth is relatively low and lags behind the European Union average. Due to an ageing population, labour shortages and increasing pressure on public services, future economic growth will need to come less from adding more workers and more from higher productivity: creating more value with the same number of people, or even fewer.
As a result, productivity growth is high on the agenda of both businesses and policymakers. It requires <a href="https://bitcomme.com/kendall-jenner-swings-from-tequila-to-cbd-drinks-with-new-investment/” title=”Kendall Jenner Swings from Tequila to CBD Drinks with New Investment”>investment in education, innovation, technology and AI, but also reducing unnecessary regulatory burdens and making smarter use of scarce labour and physical space.
Economic growth is not an end in itself, but it enables investment in broader prosperity and well-being, such as accessible healthcare, a strong defence sector and the energy transition.
Contact
Barbara
Baarsma
Chief economist,
PwC Netherlands
Barbara is chief economist of PwC Netherlands and in this role she heads the economic office of PwC. Since 2009, she has been professor of Applied Economics at the University of Amsterdam. In addition, she holds various other societal positions.
