Highlights (2008 – 2018)
This issue of the Economic and Social Indicators presents Productivity and Competitiveness Indicators for the years 2008 to 2018 for the total economy, the manufacturing sector and Export Oriented Enterprises (EOE).
During the period 2008 to 2018, 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 1.6% per annum and that of Export Oriented Enterprises (EOE) decreased at an annual rate of 0.1%.
3. Labour input (employment) and labour productivity
From 2008 to 2018, labour input for the whole economy grew by an average of 1.0% annually, while that for the manufacturing sector and EOE declined by 1.5% and 2.5% respectively. Labour productivity, as measured by real output per person engaged, grew by an average of 2.6% annually for the whole economy. During the same period, growths of 3.2% and 2.4% were registered in Manufacturing and EOE respectively.
In 2018, labour input fell by 0.1%, compared to an increase of 1.1% in 2017; while GVA growth in 2018 was 3.6%, same as registered in 2017. Thus, labour productivity for the economy grew by 3.7% in 2018, higher than the 2.4% growth registered in 2017. Labour productivity for Manufacturing increased by 0.9% in 2018, lower than the growth of 2.6% in 2017. On the other hand, EOE witnessed a fall of 0.1% in 2018 after an increase of 0.9% in 2017.
4. Capital input and capital productivity.
During the period 2008 to 2018, capital input grew at an average annual rate of 3.7% for the total economy whereas declines of 2.4% and 3.3% were recorded in Manufacturing and EOE respectively. However, because of low growth in output compared to capital input, capital productivity defined as the ratio of output to capital input, declined by 0.1% for the economy during the period 2008 to 2018. On the other hand, increases of 4.1% and 3.3% were registered in capital productivity for Manufacturing and EOE respectively.
Capital productivity for the economy increased by 0.4% in 2018 compared to 1.0% in 2017. That for Manufacturing increased by 2.7% in 2018 after an increase of 4.7% in 2017. For EOE, it fell by 2.0% in 2018 after an increase of 0.9% in 2017.
5. Average compensation of employees and Unit Labour Cost (ULC)
From 2008 to 2018, average compensation of employees increased by an average of 5.1% annually for the whole economy and by 4.8% for Manufacturing and 6.1% for EOE. ULC defined as the remuneration of labour (compensation of employees) per unit of output, grew at an average annual rate of 2.4% for the total economy, 1.6% for Manufacturing and 3.6% 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 0.5% for the total economy. It fell by 0.3% for Manufacturing and rose by 1.7% for EOE.
In 2018, ULC (in rupees) for the economy rose further by 1.4% after an increase of 2.3% in 2017 while that of the manufacturing sector rose by 2.4% after a fall of 0.1% in 2017. In the EOE sector ULC registered an increase of 6.9% in 2018 after a ‘zero-growth’ in 2017. In Dollar terms, ULC in 2018 rose by 3.3% for the whole economy, 4.3% for Manufacturing and 8.8% for EOE.