The November Conjoncture Flash points out that since 2008, apparent work productivity stagnated but, it adds, this is distorted because of the problematic way productivity is measured in the financial, real estate and public services sectors.

When one includes these sectors, the report says Luxembourg’s productivity rate grew 0.3% annually from 1995 to 2016, three times less than the eurozone average of 1%. However, the rate rises to 0.6% when the three sectors are removed from the equation.

The 2008 financial crisis triggered a decline in Luxembourg’s productivity, falling -1.8% per year (from 2008 to 2012) across the entire economy or -1% across all areas excluding the three problematic sectors. A similar stagnation was observed across the Eurozone, although over a shorter period.

Luxembourg’s productivity rate recovered slightly in 2012 with an annual growth rate of 1.7%, excluding the three sectors.

The strongest productivity rates were recorded in industrial manufacture (2013 and 2014) and information and communication (2015 and 2016).