Productivity and Competitiveness Indicators
Highlights
(2014 – 2024)
1.
Introduction
This issue of the Economic and Social Indicators presents Productivity and Competitiveness Indicators for the years 2014 to 2024 for the total economy, the Manufacturing sector and Export Oriented Enterprises (EOE).
2.
Output
During the period 2014 to 2024, the Gross Value Added (GVA) in real terms grew by an annual average of 2.4%. During the same period, the real output of the Manufacturing sector increased by an average of 0.4% annually and that of Export Oriented Enterprises (EOE) decreased at an annual average rate of 3.5%.
3.
Labour input (employment) and labour productivity
From 2014 to 2024, labour input for the whole economy rose by an average of 0.5% annually, while that for the Manufacturing sector and EOE declined by 1.7% and 5.2% 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 an average annual growth of 2.2% and that for the EOE sector witnessed an annual rise of 1.8%.
In 2024, labour input for the whole economy increased further by 2.8% after that of 4.2% in 2023; while GVA rose by 4.7% in 2024, after an increase of 4.9% in 2023. Thus, labour productivity for the economy rose by 1.9% in 2024, after an increase of 0.7% in 2023. Labour productivity for the Manufacturing sector increased by 2.5% in 2024, compared to a decline of 1.8% in 2023 and that of EOE witnessed an increase of 5.5% in 2024 after a decline of 8.3% in 2023.
4.
Capital input and capital productivity.
During the period 2014 to 2024, capital input grew at an average annual rate of 2.4% for the total economy whereas declines of 2.8% and 2.9% were recorded in Manufacturing and EOE respectively. Capital productivity defined as the ratio of output to capital input, did not grow for the whole economy during the period 2014 to 2024 (annual average growth of 0.0%). During the same period, an annual increase of 3.3% was registered in capital productivity for Manufacturing sector whilst that of EOE witnessed an annual average fall of 0.7%.
Capital productivity for the whole economy rose by 1.4% in 2024 after the growth of 2.1% in 2023. For the Manufacturing sector, it moved up by 3.0% in 2024 after increasing by 3.3% in 2023. For EOE, it rose by 1.2% in 2024 compared to a decline of 9.5% in 2023.
5.
Average compensation of employees and Unit Labour Cost (ULC)
From 2014 to 2024, average compensation of employees increased annually by 5.5% for the whole economy and by 4.9% for Manufacturing sector and 5.4% for EOE. ULC defined as the remuneration of labour (compensation of employees) per unit of output, grew at an average annual rate of 3.5% for the total economy, 2.7% for Manufacturing sector 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, decreased at an average annual rate of 0.7% for the total economy. Meanwhile, the Manufacturing and EOE sector registered an annual average fall of 1.5% and 0.6% respectively.
In 2024, ULC (in rupees) for the economy rose further by 4.8% after that of 4.2% in 2023 whilst the manufacturing sector rose by 3.2% after increasing by 5.7% in 2023. For EOE, ULC registered an increase of 12.9% in 2024 after a rise of 11.9% in 2023. In Dollar terms, ULC in 2024 rose by 2.1% for the whole economy and that for Manufacturing sector and EOE increased by 0.5% and 10.1% respectively.
08 August 2025
