Productivity and Competitiveness Indicators (2002 – 2012)
As from this issue, industrial classifications used will be according to the National Standard Industrial Classification (NSIC), Revision 2 based on the UN International Standard Industrial Classification (ISIC) of all economic activities, Rev. 4 of 2008, previous classifications used being NSIC Rev. 1 based on ISIC, Rev. 3 of 1990. This has led to some changes within the activity groups but not at overall economy. As such, for the total economy, only one series of indices is given while the indices for the manufacturing and EOE sectors have been presented in both NSIC Rev. 1 and NSIC Rev. 2 with years 2000 and 2007 as base respectively and are not strictly comparable.
During the period 2007 to 2012, the Gross Domestic Product (GDP) in real terms grew by an annual average of 3.9%. During the same period, the real output of the Manufacturing sector grew at a lower rate of 2.0% per annum while that of Export Oriented Enterprises (EOE) increased at an annual rate of 3.0%.
3. Labour input (employment) and labour productivity
From 2007 to 2012, labour input for the whole economy grew by an average of 1.7% annually, while that for the manufacturing sector and EOE declined by 1.3% and 4.1% respectively. Labour productivity, as measured by real output per person engaged, grew by 2.2% for the economy as a whole. A growth of 3.3% was registered in Manufacturing, while in EOE a higher growth of 7.4% was registered.
In 2012, labour input witnessed an increase of 1.6% against a growth of 0.3% in 2011, while GDP growth in 2012 was 3.3%, lower than the growth of 3.5% registered in 2011. Thus, labour productivity for the economy grew by 1.6%, lower than the 3.2% growth registered in 2011. Labour productivity for Manufacturing increased by 1.2% in 2012, lower than the growth of 2.7% in 2011. EOE witnessed an increase of 4.3% in 2012 compared to 8.9% in 2011.
4. Capital input and capital productivity.
During the period 2007 to 2012, capital input grew at an average annual rate of 5.0% for the total economy whereas declines of 1.7% and 6.7% 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 1.0% for the economy. On the other hand, increases of 3.7% and 10.5% were registered in capital productivity in Manufacturing and EOE.
Capital productivity for the economy witnessed declines for four consecutive years as from 2009 with a drop of 0.9% observed in 2012 (Table 1.2). The 0.9% fall in 2012 was explained by a higher growth in capital input (4.3%) compared to GDP (3.3%).
5. Average compensation of employees and Unit Labour Cost (ULC)
From 2007 to 2012, average compensation of employees increased by an average of 5.9% annually for the whole economy and by 7.5% for Manufacturing and 9.1% for EOE. ULC defined as the remuneration of labour (compensation of employees) per unit of output, grew at an average annual rate of 3.6% for the total economy, 4.2% for Manufacturing and 1.6% for EOE, as a result of higher growths in average compensation of employees compared to labour productivity.
During the same period, due to appreciation of the local currency to the US dollar, ULC in Dollar terms, increased at an average annual rate of 4.5% for the total economy, 5.1% for Manufacturing and 2.6% for EOE.
In 2012, ULC for the economy increased by 3.1% compared to 4.3% in 2011. In 2012, the growth in ULC for the manufacturing sector was 3.4% against 6.5% in 2011. In Dollar terms, ULC in 2012 decreased by 1.0% for the whole economy, 0.6% for Manufacturing and 2.3% for EOE as a result of the depreciation of the rupee vis-à-vis the US Dollar.