Could productivity gains fall further after the coronavirus crisis?
There is reason to fear that productivity gains will slow in OECD countries in the wake of the coronavirus crisis, as they did after the subprime crisis, under the effect of: The destruction of productive capital (due to bankruptcies and the decline in corporate investment); The proliferation of zombie firms, due to the surge in corporate debt; these firms are unable to modernise or grow; A further skewing of the structure of the economy from industry to services. In this scenario, potential growth would fall further, making it even more difficult for companies and governments to deleverage after the crisis.