Highlights (2009 – 2019)
This issue of the Economic and Social Indicators presents Productivity and Competitiveness Indicators for the years 2009 to 2019 for the total economy, the manufacturing sector and Export Oriented Enterprises (EOE).
During the period 2009 to 2019, the Gross Value Added (GVA) in real terms grew by an annual average of 3.6%. During the same period, the real output of the Manufacturing sector grew at a lower rate of 1.4% per annum and that of Export Oriented Enterprises (EOE) decreased at an annual rate of 0.4%.
3. Labour input (employment) and labour productivity
From 2009 to 2019, labour input for the whole economy grew by an average of 1.1% annually, while that for the manufacturing sector and EOE declined by 0.8% and 2.3% respectively. Labour productivity, as measured by real output per person engaged, grew by an average of 2.5% annually for the whole economy. During the same period, growths of 2.3% and 2.0% were registered in Manufacturing and EOE respectively.
In 2019, labour input increased by 1.6%, compared to a decline of 0.1% in 2018; while GVA growth in 2019 was 3.3%, after an increase of 3.6% in 2018. Thus, labour productivity for the economy grew by 1.8% in 2019, lower than the 3.7% growth registered in 2018. Labour productivity for the Manufacturing sector increased by 1.8% in 2019, higher than the growth of 0.9% in 2018 and that of EOE witnessed an increase of 4.3% in 2019 after a decline of 0.1% in 2018.
4. Capital input and capital productivity.
During the period 2009 to 2019, capital input grew at an average annual rate of 3.5% for the total economy whereas declines of 2.5% and 2.9% were recorded in Manufacturing and EOE respectively. Capital productivity defined as the ratio of output to capital input, moved up by 0.1% for the economy during the period 2009 to 2019. Increases were also registered in capital productivity for Manufacturing sector (4.1%) and EOE (2.6%).
Capital productivity for the economy fell by 0.3% in 2019 compared to an increase of 0.4% in 2018. That for Manufacturing increased by 2.8% in 2019 after an increase of 2.2% in 2018. For EOE, it rose by 1.3% in 2019 after a decline of 2.4% in 2018.
5. Average compensation of employees and Unit Labour Cost (ULC)
From 2009 to 2019, average compensation of employees increased by an average of 4.8% annually for the whole economy and by 4.1% for Manufacturing sector and 5.7% for EOE. ULC defined as the remuneration of labour (compensation of employees) per unit of output, grew at an average annual rate of 2.3% for the total economy, 1.8% for Manufacturing sector and 3.7% for EOE, as a result of higher growths in average compensation of employees compared to labour productivity.
During the same period, due to depreciation of the rupee, ULC in Dollar terms, increased at an average annual rate of 1.2% for the total economy. It moved up by 0.7% for Manufacturing and 2.6% for EOE.
In 2019, ULC (in rupees) for the economy rose further by 0.8% after an increase of 1.3% in 2018 and that of the manufacturing sector rose by 1.5% after increasing by 2.0% in 2018. For EOE, ULC registered an increase of 4.7% in 2019 after a rise of 6.9% in 2018. In Dollar terms, ULC in 2019 fell by 3.3% and 2.6% for the whole economy and Manufacturing sector respectively whilst it increased by 0.5% for EOE.