Report
Patrick Artus

Recession and potential growth

The mechanisms through which a recession subsequently reduces productivity gains and therefore potential growth are well kn own: loss of productive capital, loss of human capital, increasing number of zombie firms. Can we actually see that recessions (in the late 1980s, in the late 1990s and in 2008-2009) have reduced productivity gains in OECD countries? We compare productivity gains in the 1980s, the 1990s, the 2000s and the 2010s in 20 OECD countries. We see that in 6 0 % to 70% of the cases, a recession leads to a fall in trend productivity gains .
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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