What accounts for potential growth in the United States and the euro zone?

Potential growth is the sum of: Growth in total factor productivity; Growth in the employment rate, plus growth in the working-age population, multiplied by the weight of labour costs in GDP; Growth in the capital stock, multiplied by the weight of the cost of capital in GDP. When we break down potential growth for the United States and the euro zone over the period 2012-2023, we find: Total factor productivity growth of 0. 71 % per year in the United States and 0.2 6 % per year in the euro zone; A contribution of employment (sum of the employment rate and the working-age population) to GDP growth of 0. 80 percentage point per year in the United States and 0. 5 6 percentage point per year in the euro zone; A contribution of capital stock growth to GDP growth of 0.78 percentage point per year in the United States and 0.37 percentage point per year in the euro zone. The growth gap between the United States and the euro zone stems from all factors: total factor productivity, employment, capital stock.