This issue of the Economic and Social Indicators presents Productivity and Competitiveness Indicators for the years 2003 to 2013 for the total economy, the manufacturing sector and Export Oriented Enterprises (EOE).
During the period 2007 to 2013, 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 2.5% per annum and that of Export Oriented Enterprises (EOE) increased at an annual rate of 2.1%.
3. Labour input (employment) and labour productivity
From 2007 to 2013, labour input for the whole economy grew by an average of 1.5% annually, while that for the manufacturing sector and EOE declined by 0.8% and 3.5% respectively. Labour productivity, as measured by real output per person engaged, grew by 2.3% for the economy as a whole. Higher growths of 3.3% and 5.8% were registered in Manufacturing and EOE respectively.
In 2013, labour input witnessed an increase of 3.0% against a growth of 1.3% in 2012; while GDP growth in 2013 was 3.2%, lower than the growth of 3.4% registered in 2012. Thus, labour productivity for the economy grew by 0.2%, lower than the 2.1% growth registered in 2012. Labour productivity for Manufacturing increased by 1.2% in 2013, lower than the growth of 2.2% in 2012. On the other hand, EOE witnessed a decrease of 1.4% in 2013 compared to a growth of 3.8% in 2012.
4. Capital input and capital productivity.
During the period 2007 to 2013, capital input grew at an average annual rate of 4.8% for the total economy whereas declines of 1.7% and 5.7% 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 0.9% for the economy. On the other hand, increases of 4.2% and 8.3% were registered in capital productivity of Manufacturing and EOE.
Capital productivity for the economy witnessed declines for five consecutive years as from 2009 with a drop of 0.4% observed in 2013. The 0.4% fall in 2013 was explained by a higher growth in capital input (3.7%) compared to GDP (3.2%).
5. Average compensation of employees and Unit Labour Cost (ULC)
From 2007 to 2013, average compensation of employees increased by an average of 6.5% annually for the whole economy and by 6.7% for Manufacturing and 8.1% for EOE. ULC defined as the remuneration of labour (compensation of employees) per unit of output, grew at an average annual rate of 4.2% for the total economy, 3.3% for Manufacturing and 2.2% 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 4.6% for the total economy, 3.7% for Manufacturing and 2.6% for EOE.
In 2013, ULC (in MUR) for the economy increased by 7.6% compared to 2.7% in 2012; for the manufacturing sector, it declined by 0.4% against a growth of 2.8% in 2012. In the EOE sector ULC registered a higher growth of 4.9% in 2013 compared to a growth of 1.9% in 2012. In Dollar terms, ULC in 2013 increased by 5.1% for the whole economy and 2.4% for EOE but decreased by 2.7% for Manufacturing.