Productivity across the economy is elusive

For years, it has been an accepted belief that cloud computing and artificial intelligence will fuel a surge in wealth-generating productivity. This belief caused a flood of venture funding and company spending. The payoff is supposed to benefit the entire economy, but that hasn't happened yet.

Productivity is defined as the value of goods and services produced per hour of work. A government report showed that the growth in productivity since the pandemic is 1 % annually, in line with the rate since 2010 and far below the stretch from 1996 to 2004, when productivity grew more than 3 % a year.

Economies grow not only by adding capital and labour. Another vital ingredient to economic growth is the ability to commercialise innovation, which makes investment and workers more productive. A small percentage gain in productivity can significantly impact a country's wealth over time. 

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