Productivity Developments Abroad.(Brief Article)(Statistical Data Included)

Federal Reserve Bulletin | October 1, 2000| | Copyright

In recent years, the U.S. economy has surprised observers by growing briskly, even as inflation has remained quiescent. During 1996-99, for example, U.S. real gross domestic product (GDP) grew at 4.2 percent annually, whereas inflation, measured by the consumer price index, averaged only 2.3 percent. This impressive performance of the economy reflects in part an acceleration in recorded labor productivity. After having averaged 1.4 percent per year from 1973 to 1995, output per hour in the nonfarm business sector rose almost 2.6 percent from 1996 to 1999. This acceleration ...

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