Productivity Awakening: It Takes Two to Tango

In our latest Secular Outlook, we highlighted the rising potential for an innovation-driven productivity rebound in the coming years. We think productivity, a er a decade-long slump, may be driven higher by
a host of new technologies spreading throughout the economy. However, for microeconomic advances to unleash a productivity rebound economywide, the macroeconomics must cooperate: It takes two to tango. In recent years, several key macro headwinds – mostly demand-side factors and hangover e ects from the 2008−2009 global nancial crisis – have stood in the way. is may be about to change.