McKinsey_MGI
Mexican productivity growth
Compared with advanced economies and large developing economies, Mexico has derived relatively little growth from productivity improvements. In the United States and India, for example, 67 percent of GDP growth comes from growth in labor productivity--raising output per unit of work. In China, more than 90 percent of GDP gains from 1990 to 2012 came from productivity improvement. In Mexico, however, more than 70 percent of GDP growth came from a rapidly growing labor force. When the growth of the labor force slows (expansion is expected to drop from 2 percent a year to 1.2 percent), Mexico will need to raise productivity faster to sustain GDP growth. For the full report "A tale of two Mexicos: Growth and prosperity in a two-speed economy," click here bit.ly/1pbaqZm
Mexican productivity growth
Compared with advanced economies and large developing economies, Mexico has derived relatively little growth from productivity improvements. In the United States and India, for example, 67 percent of GDP growth comes from growth in labor productivity--raising output per unit of work. In China, more than 90 percent of GDP gains from 1990 to 2012 came from productivity improvement. In Mexico, however, more than 70 percent of GDP growth came from a rapidly growing labor force. When the growth of the labor force slows (expansion is expected to drop from 2 percent a year to 1.2 percent), Mexico will need to raise productivity faster to sustain GDP growth. For the full report "A tale of two Mexicos: Growth and prosperity in a two-speed economy," click here bit.ly/1pbaqZm