Productivity and Competitiveness Indicators (2012-2022)
Highlights
1.
Introduction
This issue of the Economic and Social Indicators presents Productivity and Competitiveness Indicators for the years 2012 to 2022 for the total economy, the manufacturing sector and Export Oriented Enterprises (EOE).
2.
Output
During the period 2012 to 2022, the Gross Value Added (GVA) in real terms grew by an annual average of 2.2%. During the same period, the real output of the Manufacturing sector increased by 0.7% annually and that of Export Oriented Enterprises (EOE) decreased at an annual rate of 2.3%.
3.
Labour input (employment) and labour productivity
From 2012 to 2022, labour input for the whole economy rose by an average of 0.2% annually, while that for the manufacturing sector and EOE declined by 1.7% and 4.3% respectively. Labour productivity, as measured by real output per person engaged, grew by an average of 2.0% annually for the whole economy. During the same period, labour productivity in the Manufacturing sector registered annual growth of 2.5% and that for the EOE sector witnessed an annual rise of 2.0%.
In 2022, labour input for the whole economy increased by 6.5%, after declining by 6.4% in 2021; while GVA rose by 9.8% in 2022, after an increase of 4.0% in 2021. Thus, labour productivity for the economy rose by 3.1% in 2022, after an increase of 11.1% in 2021. Labour productivity for the Manufacturing sector increased by 11.9% in 2022, compared to an increase of 15.2% in 2021 and that of EOE witnessed a rise of 13.1% in 2022 after increasing by 21.1% in 2021.
4.
Capital input and capital productivity.
During the period 2012 to 2022, capital input grew at an average annual rate of 2.5% for the total economy whereas declines of 2.8% and 1.8% were recorded in Manufacturing and EOE respectively. Capital productivity defined as the ratio of output to capital input, fell by 0.3% annually for the economy during the period 2012 to 2022. During the same period, an annual increase of 3.6% was registered in capital productivity for Manufacturing sector whilst that of EOE witnessed an annual average fall of 0.5%.
Capital productivity for the whole economy rose by 7.6% in 2022 after the growth of 2.3% in 2021. For the Manufacturing sector, it moved up by 11.1% in 2022 after increasing by 12.1% in 2021. For EOE, it increased by 14.8% in 2022 after rising by 11.8% in 2021.
5.
Average compensation of employees and Unit Labour Cost (ULC)
From 2012 to 2022, average compensation of employees increased by an average of 5.0% annually for the whole economy and by 4.0% for Manufacturing sector and 3.8% for EOE. ULC defined as the remuneration of labour (compensation of employees) per unit of output, grew at an average annual rate of 3.0% for the total economy, 1.5% for Manufacturing sector and 1.8% 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, decreased at an average annual rate of 0.9% for the total economy. It registered an annual fall of 2.3% for Manufacturing sector. For EOE, it fell annually by 2.0%.
In 2022, ULC (in rupees) for the economy rose by 2.8% after an increase of 5.3% in 2021 and that of the manufacturing sector rose by 10.9% after increasing by 7.0% in 2021. For EOE, ULC registered an increase of 3.3% in 2022 after a rise of 8.8% in 2021. In Dollar terms, ULC in 2022 fell by 2.8% for the whole economy and that for Manufacturing sector increased by 4.8%, whilst it fell by 2.3% for EOE.
04 August 2023
