France, Germany and the UK Similarities, differences and prospects This research is funded by the European Commission, Research Directorate General as.

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Presentation transcript:

France, Germany and the UK Similarities, differences and prospects This research is funded by the European Commission, Research Directorate General as part of the 6th Framework Programme, Priority 8, "Policy Support and Anticipating Scientific and Technological Needs".

France, Germany and the UK Large share of EU value added France Germany UK EU-15 EU-10 Developments in these countries important in understanding EU productivity

France, Germany and the UK Similarities: deceleration or no change in labour productivity growth.... in contrast to acceleration in US Growth in value added per hour worked % per annum, versus France Germany UK US

Similarities: Acceleration in labour productivity in electrical machinery, post and communications Growth in value added per hour worked % per annum, versus France Germany UK US

Similarities: acceleration in percentage points contribution of ICT capital to output growth ICT capital contribution pp per annum, versus France Germany UK US

Similarities: poor performance in MFP growth relative to US Growth in Multifactor productivity Market Economy % per annum France Germany UK US

Differences: France and UK show increase in person engaged, , but not Germany Growth in persons engaged % per annum France Germany UK US

Differences: Industry location of productivity gains France MFP growth success in traditional manufacturing, big decline in UK Growth in multi-factor productivity, % per annum France Germany UK US

Differences: Industry location of productivity gains MFP growth success in UK in Financial and Business services, big decline in Germany Growth in multi-factor productivity, % per annum France Germany UK US

UK very large contribution to EU ICT capital growth Contributions to ICT capital growth, Value added shares UK

France – relatively successful in traditional manufacturing and in raising the employment rate overall But employment growth in market services associated with static MFP growth

Germany Downturn in labour productivity growth not compensated by increase in employment But concerns over labour force skills - share high skilled workers sluggish compared to other countries Germany has maintained growth in value added in manufacturing US UK France Germany

France, Germany and the UK Prospects UK: Shows some signs of following US lead in reaping benefits from ICT France: No immediate signs of a US style productivity growth acceleration Germany: Prospects of US style growth spurt are dim Better prospects for an acceleration in other EU countries such as the Netherlands, Ireland and Finland – but small share of EU value added European productivity revival may be held back by some larger economies, including Spain and Italy