EU shows strong growth of productivity in 2006

07 Nov '07

3 min read

The European Union in 2006 had its best economic performance since 2000 with a growth of the Gross Domestic Product (GDP) of 3%. Productivity, measured by the increase of GDP per employee, grew strongly for the EU-27 with 1,5 %, compared to an annual growth rate between 2000 and 2005 of 1,2.

Employment growth accelerated for the EU-27 by 1,6 %, whilst the average annual rise for the period 2000 until 2005 was 0,5 %. The European Competitiveness Report of the European Commission, presented in Brussels, marks as well that in 2006 productivity grew stronger in the EU than in the US (1,4 %), of which the Commission hopes this will be the start of a long term trend. The growth rates show a widespread improvement, across countries and economic sectors.

Commission Vice-President Günter Verheugen, responsible for enterprise and industry policy, said: “These are very encouraging results, which tell us that that the reforms under the revised Lisbon strategy for growth and jobs are starting to bear fruit.

European industries have managed to maintain their positions on global markets, contrary to American and Japanese producers. Now the challenge is to push forward our reform agenda. I'm still concerned about the spending on research and development, particularly in the private sector. There is a clear need to step it up.''

The Competitiveness Report was redesigned in 2006 to contribute to a solid analytical underpinning of the microeconomic pillar of the Lisbon strategy, dealing with policies fostering technological progress, the use of information and communication technologies (ICT), competition, product markets reform and infrastructures.

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