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Why the US Could Be On the Cusp of a Productivity Boom


Neil Irwin reports via Axios: The dearth of productivity growth over the last couple of decades has held back incomes in the U.S. and other rich countries, according to a report out Wednesday from the McKinsey Global Institute, the research arm of the global consultancy. Productivity growth has bee...

The McKinsey report finds that global labor productivity growth was 2.3% a year from 1997 to 2022, a rapid rate that has increased incomes and quality of life in large parts of the world. "Inflationary pressure and rising interest rates could be signs that we are leaving behind secular stagnation and entering an era of higher demand and investment," the report finds. "In corporate boardrooms around the world right now, there's a tremendous amount of conversation associated with [generative] AI, and I think there's a broad acknowledgment that this could very much transform productivity at the company level," Olivia White, a McKinsey senior partner and co-author of the report, tells Axios.

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