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McKinsey: superstar firms to accelerate annual productivity ...
14-04-2021 10:18
McKinsey: superstar firms to accelerate annual productivity growth after pandemic
McKinsey: superstar firms to accelerate annual productivity growth after pandemic

According to analysts at the McKinsey Global Institute (MGI), the coronavirus pandemic helped most global companies to switch to new business models. This, in turn, pushed the global labor efficiency higher.

Global productivity may double if other companies also choose new business models. During the pandemic, most large enterprises fundamentally altered their strategies. They successfully implemented online sale channels and automated production. This allowed them to increase productivity and accelerate business processes.

Experts are analyzing new tendencies performing the research called "Will productivity and growth return after the COVID-19 crisis?" "If advances broaden and demand is robust, annual productivity growth could accelerate by about 1 percentage point in the period to 2024," MGI supposes.

Specialists have estimated that after the pandemic, the productivity rate may more than double compared to the period after the global financial crisis of 2008-2009. Strong productivity growth is likely to take place in such areas as healthcare, construction as well as information and communication technology (ICT) and retail sales.

The best predictions will come true only in case of a constant rise in the indicator. If productivity grows only in the leading spheres and superstar firms, this "could lead to a widening gap between productivity and median wage growth, rising unemployment or lowering employment".

Labor productivity in the MGI study is defined as gross value added divided by the number of hours worked. Authors of the report have analyzed the influence of digitalization, automation, innovative methods, and investment in human capital on the productivity of companies during and after the pandemic.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

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