Report
Patrick Artus

Why does growth remain low despite new technologies? The possible explanations

Despite automation, corporate investment in new technologies and extension of the length of studies, productivity gains have declined and potential growth has decreased across all OECD countries . In this Flash w e want to give a list of explanations that have been provided of this paradox of weak growth despite new technologies. It may be explained by: A measurement problem (an underestimation of real growth in services, given the new services); The distortion of the structure of jobs towards low-productivity services; The costs (security and ethics jobs) linked to internet development; The growing inefficiency of research; The fact that inefficient companies (zombie companies) are kept alive by very low interest rates ; The reappearance of monopoly positions, especially for internet companies; The hysteresis of the negative effects of the 2008 crisis.
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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