Productivity and Competitiveness Indicators (2004 – 2014)
This issue of the Economic and Social Indicators presents Productivity and Competitiveness Indicators for the years 2004 to 2014 for the total economy, the manufacturing sector and Export Oriented Enterprises (EOE).
During the period 2007 to 2014, the Gross Domestic Product (GDP) in real terms grew by an annual average of 3.8%. During the same period, the real output of the Manufacturing sector grew at a lower rate of 2.4% per annum and that of Export Oriented Enterprises (EOE) increased at an annual rate of 1.7%.
3. Labour input (employment) and labour productivity
From 2007 to 2014, labour input for the whole economy grew by an average of 1.5% annually, while that for the manufacturing sector and EOE declined by 0.5% and 2.8% respectively. Labour productivity, as measured by real output per person engaged, grew by an average of 2.3% annually for the whole economy. Higher growths of 3.0% and 4.7% were registered in Manufacturing and EOE respectively during the same period.
In 2014, labour input witnessed an increase of 1.3% against 3.0% in 2013; while GDP growth in 2014 was 3.5%, higher than the growth of 3.2% registered in 2013. Thus, labour productivity for the economy grew by 2.2% in 2014, higher than the 0.2% growth registered in 2013. Labour productivity for Manufacturing increased by 1.0% in 2014, slightly lower than the growth of 1.1% in 2013. On the other hand, EOE witnessed a further decrease in 2014 (-1.2%) after that of 2013 (-2.1%).
4. Capital input and capital productivity.
During the period 2007 to 2014, capital input grew at an average annual rate of 4.6% for the total economy whereas declines of 1.5% and 3.9% 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 0.7% for the economy during the same period. On the other hand, increases of 4.0% and 5.9% were registered in capital productivity of Manufacturing and EOE respectively.
Capital productivity for the economy increased by 0.7% in 2014 compared to a decrease of 0.8% in 2013. This was due to a higher growth in GDP (3.5%) than in capital input (2.8%).
5. Average compensation of employees and Unit Labour Cost (ULC)
From 2007 to 2014, average compensation of employees increased by an average of 6.0% annually for the whole economy and by 6.3% for Manufacturing and 7.6% for EOE. ULC defined as the remuneration of labour (compensation of employees) per unit of output, grew at an average annual rate of 3.7% for the total economy, 3.2% for Manufacturing and 2.8% 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 4.1% for the total economy, 3.6% for Manufacturing and 3.2% for EOE.
In 2014, ULC (in MUR) for the economy rose further by 2.4% after an increase of 6.0% in 2013 while that of the manufacturing sector rose by 1.8% after increasing by 0.4% in 2013. In the EOE sector ULC registered an increase of 4.7% in 2014 after a growth of 6.5% in 2013. In Dollar terms, ULC in 2014 increased by 2.7% for the whole economy, 2.1% for Manufacturing and 5.1% for EOE.