March 7, 2024

Yes, you read that correctly. A once in a lifetime rise in labour productivity was reported. Let's have a look at that graph:

Wow. Just wow. You can almost see the trend appearing. What's causing it? Unclear, but it probably has to do with some manufacturing being reduced at the end of the year.

Things could be worse. We could be Germany.

The German economy is not doing so great. Exports were up at the end of the year which means that there is some signs of life creeping back into Europe's economic engine. The impact of the war in Ukraine continues to have a major impact central Europe's growth.

The question everyone is asking is what is the solution to the malaise? I think the story about how they got here is more important. The government continues to promote policies that are not going to support growth and have not turned towards the new realty of government investment lead growth.

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