Answer to Question #202887 in Macroeconomics for Mariza

Question

In 2017, labor productivity in Quebec (in Canadian dollars, purchasing power parity) was $ 60.15. For the Canadian average, we are talking about a GDP per hour worked of $ 66.96.

Our productivity is much lower compared to that of the United States ($ 82.03), Germany ($ 87.38) or Belgium ($ 93.43). Quebec is not at the bottom of the rankings, however: they are South Korea ($ 45.77) and Japan ($ 59.46). "

Source: Annual report Productivity and prosperity in Quebec (2018 report), published by HEC Montréal.

In 2009, labor productivity in Quebec was $ 48.56. What is the average annual productivity growth rate in Quebec between 2009 and 2017?

Answer 1

Annual Productivity growth rate = (60.15-48.56)/48.56*100 =23.87%

This is for a period of 9 years which means that the total divided by 9 years

Average Annual Productivity growth rate = 23.87%/9 =2.65%