MGI in the news

The countries that have grown their overall economies fastest since 2010 did so primarily by hiring more workers. But today, there aren't many workers in reserve. Labor markets remain comparatively tight across most advanced economies, despite more recent softening. This tightness isn't simply a lingering effect of the Covid-19 pandemic. Rather, it reflects a sustained long-term trend driven by aging workforces and increased labor demand, write Anu Madgavkar and Olivia White in Barron's.

The United States, like the world at large, is experiencing labor shortages that are likely to persist. How can we ensure the economy remains strong despite these labor shortages, and what can employers do about it? Even as U.S. unemployment climbed to its highest level in three years in July, labor market tightness remains a persistent long-term trend, writes Kweilin Ellingrud in Forbes.

The deployment of AI and generative AI along with other economic and business shifts is redefining work in Europe and the United States, writes Kweilin Ellingrud in Forbes.

Micro-, small and medium-size enterprises play an underappreciated and outsized role in the global economy, accounting for 90% of businesses. Yet small businesses struggle with productivity in comparison with large companies, despite them playing a central role in economic growth. Recent research from the McKinsey Global Institute highlights important implications on how best to tackle the MSME productivity problem, write Olivia White and Anu Madgavkar in World Economic Forum.

Investment in productivity growth will be critical to shared prosperity even in Asian countries that have made huge strides over the past 25 years, write Chris Bradley and Gautam Kumra in Bloomberg.

Shared prosperity can flow from new technology only if its adoption is accompanied by upgraded skills and proactive worker redeployment. In the age of generative AI, employers should be candid about nascent skills gaps, and governments should focus on enabling all workers to upgrade their skills in a timely and appropriate fashion, write Eric Hazan and Simon Johnson in Project Syndicate.

Labor productivity growth in the United States, Canada, and advanced economies in Western Europe and Asia, has been dismal for almost a generation, hovering around 1% a year. Is this lackluster performance all we can expect for the next generation? It doesn’t have to be, write Chris Bradley, Jan Mischke, and Olivia White in Fortune.

A worker who gets a raise should be pleased to bring home a bigger paycheck. But that bump in income doesn’t improve living standards in any meaningful way if their average rent is still far beyond their means. Most countries gauge prosperity by looking at income or wage growth, but those metrics don’t fully reflect what it takes to get by, writes Kweilin Ellingrud in Forbes.

As we enter a new geo-economic era, Europe's competitiveness is under pressure. New research highlights the need for bold action if European firms are to compete globally. Scaling up across Europe, in areas such as R&D, will help companies increase their competitiveness, write Sven Smit and Jan Mischke in World Economic Forum.

Several key issues must be addressed to accelerate our efforts to reach net zero. This includes innovative energy solutions, driving down technology costs and developing new financing mechanisms, to name a few. Entirely new opportunities will also be created by the transition, write Mekala Krishnan and Humayun Tai in World Economic Forum.

Accelerating productivity growth has always been the sure way to deliver long-term prosperity, and small businesses play a crucial role in driving it. But they struggle with productivity in comparison with large companies. Perhaps counterintuitively, the most effective way to tackle this issue is for micro, small, and medium enterprises to strengthen their networks with large companies, write Anu Madgavkar and Olivia White in Inc.

Productivity growth is the secret sauce that fuels economic success. It determines how much output we get from our inputs, and when it's high, living standards soar, writes Kweilin Ellingrud in Forbes.

Changes in the global economic environment, coupled with geopolitical influences, have reset trade relations in various places, and competition has become fierce. All walks of life have been affected, such as the supply chain of the technology industry. However, under the new situation, China is still active and plays an important role in global trade, but its positioning has changed, and operators must always keep an eye on the situation and make adjustments, writes Jeongmin Seong in Hong Kong Economic Times.

World leaders are confronting the challenge of turning ambitious climate commitments into action. They are naturally focused on the essential objective of reducing global emissions quickly. However, the vital work of ensuring a successful net-zero transition will require us to take into account three additional objectives: affordability, reliability, and industrial competitiveness, write Mekala Krishnan Daniel Pacthod, and Sven Smit in Fortune.

The heightened turbulence of the past few years, including the pandemic and geopolitical fracturing at a time of sweeping technological change, gives the world a distinctly uncertain feel. Given all this change, we may well be transitioning to a new era with different economic and political dynamics. In this new era, Asia feels like it is center stage, writes Kweilin Ellingrud in Forbes.

The world remains deeply interconnected, but in the crucible of geopolitics, the pattern of trading is shifting. Investment flows suggest that more change is on its way. New research by the McKinsey Global Institute finds that the way the “geometry” of global trade is reconfiguring matters—for resilience and for economic growth, write Gautam Kumra and Jeongmin Seong in Bloomberg Asia.

The world of work is undergoing a rapid transformation. The COVID-19 pandemic accelerated trends in the U.S. labor market that were already in motion, and jobs continue to change at an unprecedented pace. What roles and skills will be in demand? And how can individuals and companies adapt? Kweilin Ellingrud helps answer these questions in Forbes.

When it comes to lifting people out of poverty, how do we define minimum acceptable living standards? For years, poverty has been measured against the World Bank’s $2.15 per day benchmark. In one of history’s biggest achievements, a billion people worldwide climbed above this line in recent decades. Now it’s time to go further — not only by helping the 730 million people still in extreme poverty but by creating the foundations that would give everyone a shot at thriving, write Sven Smit and Anu Madgavkar in World Economic Forum.

New strategies will be needed as it is going to be very different from the past 30 years when the continent, with China at the vanguard, surged to global prominence, write Jeongmin Seong and Nick Leung in China Daily.

You’ve heard it before: When the Covid-19 pandemic began, the way people worked, lived and shopped in cities around the world changed dramatically. Many employees abruptly retreated from traditional offices to home offices – or, as likely, the dining room table. Freed from their daily commutes, many chose to move to roomier abodes in the suburbs. And with fewer of them working and living near urban stores, fewer shopped in their old haunts. In recent months, those many other researchers. Moreover, our analy-behavioral shifts have slowed; others, particularly the switch to hybrid work combining time at home with time at the office, persist, write Jan Mischke, Aditya Sanghvi, Olivia White, and Lola Woetzel in Milken Institute Review.

Countries and companies worldwide have made commitments to get to net zero. But there’s another challenge of equal scale that demands the same urgency: addressing poverty in a decisive way. These goals are linked and have to be tackled in tandem, write Anu Madgavkar and Lola Woetzel in Devex.

The world is grappling with not one, but two existential challenges. On the one hand, it is urgent to raise minimum living standards and meet the aspirations of billions of people around the world who struggle to afford the full range of basic needs. On the other hand, equally important, is the imperative to protect the planet from the worst consequences of climate change. The extent to which we make concerted progress on both fronts in this decade will shape the course of the world for generations to come writes Anu Madgavkar in Brookings.

Africa will shortly be home to the world's largest working age population and a burgeoning consumer class; it’s also rich in natural resources. Despite such human capital and natural resources, Africa’s economic growth and productivity has slowed over the past decade. If nations across the continent deploy their diverse strengths, it could help reimagine Africa’s growth and lead to greater sustainability and prosperity for everyone, write Olivia White and Mayowa Kuyoro in World Economic Forum.

What is poverty? And what, if anything, can business do to ensure that there is less of it? Kweilin Ellingrud helps answer these questions in Forbes.

Mobilizing the investment needed to complete the net-zero transition will require broad public backing and participation. Given that people living in poverty are less likely to support climate action, simultaneous efforts to improve living standards are essential, write Michael Spence, Anu Madgavkar, and Sven Smit in Project Syndicate.

According to McKinsey Global Institute research, approximately 4.7 billion people worldwide, including 2.6 billion in the G20, live below the economic ‘empowerment line’. At the same time, India and the rest of the G20 face another pressing imperative: limiting global warming. The moment calls for addressing both issues, write Rajat Dhawan and Anu Madgavkar in Mint.

The global balance sheet – the sum of all assets and liabilities in the world economy – has expanded continuously for the past two decades. But while its rise has been faster than during this soaring of the world's 'wealth on paper', productivity has slowed and investment dwindled. Boosting productivity is imperative and that requires savings flowing into productive investment and accelerated adoption of digital technologies, write Sven Smit and Jan Mischke in World Economic Forum.

Understanding why the GDP per capita of Mapusa in Goa, India, is around $33,000, same as Porto, Portugal, even when India's per capita GDP hovers at $2,389 (per capital GDP of Portugal is 5X India's) could give an idea of how resources can be deployed where they are most needed, write Chris Bradley and Lola Woetzel in Forbes India.

The U.S. economy has absorbed the massive changes the pandemic brought to the labor market, with 8.6 million occupational shifts over the three years of COVID—50% more than in the previous three years. Now another disruption has arrived: generative artificial intelligence, write Michael Chui, Kweilin Ellingrud, and Asutosh Padhi in Fortune.

Many thinkers today, like those bearded sign-bearers in the cartoons, are proclaiming that the end is near, at least for big cities. Is the doomsaying accurate? The good news is that the bleakest forecasts are too gloomy. The bad news is that urban real estate is indeed facing substantially reduced demand. Stakeholders–owners, tenants, cities, investors, and banks–need to adapt, and they need to do it now. As the fog lifts, sitting things out and hoping for a recovery is not an option, write Jan Mischke, Olivia White, and Aditya Sanghvi in Fortune.

Generative AI technologies like ChatGPT have taken the world by storm, thanks to their stunning ability to parse natural language and make decisions that are remarkably human. This latest advance in artificial intelligence is speedily transforming business and work, leaving companies, governments, and individuals scrambling to assess its impact in real time, write Michael Chui and Lareina Yee in Fast Company.

By winning the talent war, igniting business reinvention, balancing energy affordability and productivity, and shaping the economic context, CEOs can lead the charge towards restoring productivity growth, writes Kweilin Ellingrud in Forbes.

California cannot just glory in the buzz of tech; it needs to raise its game more broadly, write Alexis Krivkovich and Olivia White in San Francisco Business Times.

With U.S. and global inflation lingering at above-average levels, interest rates continuing to rise in major markets, and financial turbulence surfacing, all eyes are on central banks. Their decisions matter. But improving productivity growth matters more, write Asutosh Padhi and Olivia White in Barron's.

The economic, banking, and investment landscape may well look materially different in the next ten years than it did in the last 20. But the range of possible paths forward is wide, with the best- and worst-case scenarios implying sharply different outcomes, write Olivia White, Lola Woetzel, and Jan Mischke in Project Syndicate.

COVID-19. War in Europe. Inflation. Geopolitical uncertainty. Global business leaders have had a lot to deal with in the last few years, and they cannot assume the future will be any easier or more familiar. Rather, the economic, banking, and investment landscape of the next decade is likely to look materially different from the recent past, write Jan Mischke, Sven Smit, and Olivia White in Fortune.

When assessing human progress, granularity matters. What we see the closer we get to ground truth is often quite different from the picture painted at a national or subcontinental level, write Chris Bradley and Gautam Kumra in The Edge.

The materials, innovation, and capital needed to limit global warming are not equally distributed around the world. Ensuring that all economies can achieve the transition to net-zero greenhouse-gas emissions and meet their climate goals will require scaling up cross-border flows of goods, services, financing, and intangibles, write Olivia White and Mekala Krishnan in Project Syndicate.

New McKinsey Global Institute analysis finds a more nuanced reality. The world remains deeply interconnected, and flows have proved remarkably resilient during the most recent turbulence. Furthermore, no region is self-sufficient. The challenge, therefore, is to harness the benefits of interconnection while managing the risks and downsides of dependency - particularly where products are concentrated in their places of origin, writes Jeongmin Seong in The Economic Times.

Globalization is not in retreat, despite claims to the contrary. Trade flows linked to knowledge and know-how, including data, intellectual property, services, and talent, have replaced manufactured goods, resources, and capital as the primary drivers of interconnection, and firms of all sizes should be able to benefit, write Olivia White and Lola Woetzel in Project Syndicate.

Since 2005, productivity growth has been lackluster, averaging 1.4% a year, compared to the post-World War II average of 2.2%. That is a problem. Increasing productivity–economic output per unit of input–maintains U.S. competitiveness and improves our quality of life. It is also essential to meet challenges like inflation, debt loads, entitlements, and the energy transition, write Asutosh Padhi and Olivia White in Fortune.

A new report from McKinsey Global Institute finds that U.S. productivity growth has slowed in the last 15 years to 1.4% annual growth (as compared to long-term rates of 2.2% since 1948). It also found striking variations in productivity among leading and lagging firms within each sector — a gap that is only widening, write Charles Atkins, Austosh Padhi, and Olivia White in Harvard Business Review. 

Over the last three years, companies have faced a series of challenges and crises, from a global pandemic and supply challenges to inflation and rapidly rising food and energy costs. As companies determine the best strategy for the future and how to adjust operations, understanding what places have grown or shrunk at a more granular level is more important than ever. Having a micro, or pixelated perspective on economic development around the world can help a company see where growth is occurring, identify new talent and consumers, and more accurately target investments. In short, the microregional perspective can inform strategy, propel growth, and increase profits, writes Kweilin Ellingrud in Forbes.

The pandemic, Ukraine, geopolitical stress, climate change, and macroeconomic uncertainty: These are turbulent times. No wonder business leaders and policymakers are re-examining everything from their supply chains to their trading patterns. The overarching question, as we see it, is what this means for globalization, write Bob Sternfels and Olivia White in Fortune.

While some believe that economic growth is incompatible with fighting climate change, only growing economies can produce the financial resources needed to make the transition to a net-zero economy. Accelerating global growth could bring lower-income households into the middle class and build infrastructure to reduce emissions, write Sven Smit, Anu Madgavkar, and Kevin Russell in Project Syndicate.

The COVID-19 pandemic disrupted – and even reversed – progress on improving living standards globally, but it did not extinguish the potential for further gains. With a more granular understanding of how past progress unfolded, we can put ourselves on a path toward fulfilling that potential – and even chart a more efficient course, write Chris Bradley and Marc Canal Noguer in Project Syndicate.

From Russia’s war on Ukraine to the Sino-American rivalry, the world order is increasingly contested, and when value chains are global, a single disruption can reverberate across the planet. But retreating from interconnectedness is both unworkable and unnecessary, write Olivia White and Lola Woetzel in Project Syndicate.

Talk about hitting the nail on the head: Collins Dictionary declared “permacrisis” its word of the year for 2022. What better encapsulates what we’ve all been living through than a term for “an extended period of instability and insecurity”? The McKinsey Global Institute recently released a fascinating analysis that offers a way to think about what is unfolding today and what may come out of it, writes Kweilin Ellingrud in Forbes.

SIGNIFICANT disruption to global supply chains in the most intense periods of the Covid-19 pandemic, and in the wake of Russia's invasion of Ukraine, has prompted speculation that economies and companies could choose to deglobalise and decouple. Some strategic repositioning may well occur, but overall, global connections are not retreating but evolving, write Jeongmin Seong and Gautam Kumra in The Business Times.

A large and growing slice of the American workforce has no employer-provided health care or 401(k)s to build retirement savings, and they have to pay twice as much into Social Security as their peers. These individuals don’t get paid time off and must cover their own business expenses, and their earnings can be subject to unpredictable swings. But here’s the kicker: It turns out that this group is more optimistic than the rest of the US workforce, writes Kweilin Ellingrud in Forbes.

Years of remarkable progress in health, wealth, education, and the deepening of global interconnections have made people much better off overall. But the world has entered a new period of turbulence, and it remains to be seen what new rules and institutions will emerge from it, writes Chris Bradley in Project Syndicate.

We live in a world of instant streaming, overnight delivery, and smart devices. Technological advances have transformed almost every aspect of our lives, and even more so since the COVID-19 crisis. But paradoxically, one big element of the economy isn’t responding: productivity growth, writes Kweilin Ellingrud in Forbes.

It may seem counterintuitive for employers to double down on learning and development at a time when workers are becoming more mobile. But recent research across four leading economies suggests that such a strategy is more important than ever, write Christopher Pissarides and Anu Madgavkar in Project Syndicate.

New research from McKinsey that studied the career progression of some 4 million workers over a decade revealed the factors behind dramatic surges in lifetime earnings, write Sven Smit, Anu Madgavkar, and Bill Schaninger in Fast Company.

In such a tight hiring market, companies need more emphasis on retaining and developing their own employees, writes McKinsey Global Institute director Kweilin Ellingrud in Forbes.

People grow and add skills by varying their work experience—in other words, by moving, write Bill Schaninger and Anu Madgavkar in Fortune.

The McKinsey Global Institute used big data to examine 4 million real-world job histories and found that meaningful work experience is critical to human capital development. Effective organizations who prioritize learning and development can have a major impact on whether or not an individual reaches their potential, write Anu Madgavkar and Sven Smit in World Economic Forum Agenda.

 

European firms currently lack the scale and agility they need to compete with their US and Chinese counterparts. Wise policymakers would harness the cooperative momentum generated by the Ukraine war and embrace the “transversal technologies” that are crucial to the region’s future prosperity, write Jan Mischke and Jurica Novak in Project Syndicate.

While the state of national economies is usually measured by GDP or other measures of economic flows like consumption and investment, this research at the McKinsey Global Institute examines macroeconomic vitals from a different perspective: the collective balance sheets of 10 countries (Australia, Canada, China, France, Germany, Japan, Mexico, Sweden, the UK and the U.S.) that generate more than 60 percent of global income. And this view highlights a striking dual paradox that will be of increasing concern over the next decade. First, traditional capital and real estate continue to comprise most of net worth, even as national economies increasingly depend on intangible capital for productivity growth. Second, balance sheets have expanded rapidly over the past two decades, even as economic growth has ratcheted down, write Sven Smit, Lola Woetzel, Anu Madgavkar, and Jan Mischke in Milken Institute Review. 

Companies that prepare for the opportunities and risks that India’s net-zero transition entails will raise their odds of thriving, write Rajat Gupta and Suvojoy Sengupta in Mint.

Reaching net-zero emissions by 2050 – and thus limiting the rise in global temperatures to 1.5°C above pre-industrial levels – implies profound economic and societal shifts. A successful transition would have six key characteristics, writes Mekala Krishnan in Project Syndicate.

Solving a fundamentally global, borderless problem requires an unprecedented level of global collaboration, write Hamid Samandari and Mekala Krishnan in Fortune.

More investment in intangible assets will help recalibrate the region's economy, write Lola Woetzel and Joydeep Sengupta in Nikkei Asia. 

In economic and social terms, Gautam Kumra and Lola Woetzel explain how achieving this goal will impact everyone globally in The Business Times. 

The world is richer than it has ever been, but the way in which we create wealth has changed. Should we be using our wealth more productively? Jonathan Woetzel, Anu Madgavkar and Jan Mischke highlight their research findings in Barron's. 

The world's wealth has increased vastly over the past two decades－and nowhere as much as in China. Its share of global net worth was the highest among 10 countries included in MGI’s The Rise and Rise of the Global Balance Sheet report that explores the vitality of the global economy via its balance sheet, write Lola Woetzel and Jan Mischke in China Daily.

The digitized, dematerialized, knowledge-based economy is already here and spreading, and offers huge potential value. The challenge for firms and policymakers is to manage the transition in a way that benefits the many and not just the few, write Eric Hazan, Jonathan Haskel and Stian Westlake in Project Syndicate. 

Asia is the world’s consumption growth engine—miss Asia and you could miss half the global picture, a $10 trillion consumption growth opportunity over the next decade, write Jeongmin Seong and Tiago Devaso in Brookings Future Development blog.

New research by McKinsey Global Institute finds that consumption in Thailand could grow sharply from US$120 billion a year to US$410 billion over the next decade, write Noppamas (Yam) Sivakriskul and Jeongmin Seong in Bangkok Post.

China’s consumption story is evolving. Rising incomes still matter, but the primary feature of the next decade may very well be the impact of sweeping demographic and social change that is coinciding with the rapid march of technology. To find the consumers who will drive China’s growth, you need to look at very different groups of individuals. So who are the consumers who are key to growth? Lola Woetzel and Jeongmin Seong highlight five consumer shifts that matter in China Daily.

Digital finance has many aspects that can improve the workings of emerging economies and further the cause of sustainable development. Open data for finance, where financial data is shared digitally among financial institutions with limited effort or manipulation, is a powerful tool to that end, write Anu Madgavkar and Olivia White in World Economic Forum.

Just when consumers think it’s safe to draw down their pandemic reserve of toilet paper, many are finding stockouts and price increases on other products. Unexpected price increases on a wide range of products raise questions about when consumer product markets will return to normal. Authors Jaana Remes and Sajal Kohli highlight new McKinsey Global Institute analysis in Barron's indicating that the pandemic interrupted a long-term rising trend in the share of services in household consumption, triggering an unexpected spike in demand for products. This may not change anytime soon.

Establishing and expanding digital financial data-sharing systems presents complex technical and regulatory challenges. But secure and trusted schemes also offer a large potential upside for consumers, financial institutions, and the economy, write Anu Madgavkar and Olivia White in Project Syndicate. 

To what extent could open-data ecosystems for finance go beyond greater convenience and easier interactions between financial providers and their customers? Our research suggests that the upside in terms of generating GDP growth is considerable, write Olivia White, Zac Townsend, and Anu Madgavkar in OECD Forum.

Asian consumers are expected to account for half of global consumption growth in the next decade, offering a $10 trillion opportunity. However, the increasing spending power of the region's consumers is not only a story of scale, but also one of diversity and shifting preferences and behaviors caused by powerful demographic, social and economic forces, writes Oliver Tonby in The Korea Times.

Today, Black Americans face stubborn gaps between their economic position and that of white people. Research estimates a $220 billion annual wage disparity versus a parity scenario, with Black workers currently concentrated in low-wage jobs, underrepresented in higher-paying occupations, and paid less than white workers on average within the same occupational categories, especially in managerial and leadership roles. Two initiatives could make a big difference: unblocking pipelines into higher-paying professions and creating pathways to better careers from lower-paying occupations. The authors describe how business leaders can do this to promote Black economic mobility, write Shelley Stewart III, Duwain Pinder, and Michael Chui in Harvard Business Review. 

The definition of intangible assets needs updating to include the knowledge and skills that underpin them. New research shows that companies who invested in these assets are unlocking higher levels of growth. Policymakers can enable economic recovery by helping to define these assets, and by investing in skills and education, write Eric Hazan and Sven Smit in World Economic Forum.

The COVID-19 pandemic has exposed the fragility of global supply chains and highlighted the public health and national security implications of supply chain vulnerability. Policy reactions have focused on limiting exports and encouraging domestic production. But building supply chain resilience will require a more rigorous assessment of risk and a strategic set of policy actions, writes Susan Lund in Georgetown Journal of International Affairs. 

The behavioral changes that persist after the pandemic will offer new business opportunities for firms that carefully assess consumer, industry, and regulatory trends. And policymakers can help the world to boost productivity by extending and improving digital infrastructure and ensuring universal access to it, write Anu Madgavkar and Jaana Remes in Project Syndicate. 

Eliminating racial barriers for Black Americans could initiate a wave of growth, dynamism and productivity, write Shelley Stewart and Michael Chui in CNN Business.

To determine how enduring pandemic-spurred shifts may be, we examined a wide array of behaviors across five countries – China, France, Germany, the United Kingdom, and the United States — using a “stickiness” test that takes into account the preferences of consumers and workers as well as the actions of companies, write Jaana Remes and Anu Madgavkar in Market Watch.

Despite unprecedented challenges, many small to medium-sized businesses (SMBs) around the world have shown remarkable resilience and capacity to reinvent themselves, write Tera Allas, Michael Birshan, Anthony Impey, Charlie Mayfield, Jan Mischke, and Lola Woetzel in Harvard Business Review.

Governments have deployed a staggering amount of public money to support economies during the COVID-19 pandemic, but the path out of the pandemic into recovery and beyond is extremely uncertain. Although economies have proved more resilient than the most pessimistic forecasts, there are very large differences among companies, sectors and countries as well as uncertainty whether this resilience will be sustained. Much depends on choices made by policy makers and business leaders, write Jan Mischke, Eckart Windhagen, and Solveigh Hieronimus in OECD Forum. 

Time is running out for Korea's business leaders who don't have a climate strategy, writes Lola Woetzel in The Korea Times.

There’s a brief window to reduce American dependence on fragile, overseas supply chains for critical products in areas like healthcare, tech and defense—and create new jobs to power the American economy, writes Katy George in Market Watch.

As US factories are struggling to keep up with demand, it’s a now or never moment to make domestic manufacturing more competitive, write Katy George and Eric Chewning in Industry Today.

In McKinsey's latest Global Survey on the economy, executives' views are more positive than they were in March. Globally 73% of respondents believe that conditions in the world economy will improve in the next six months. The share of executives expecting worsening conditions has shrunk by over a half in the past three months, write Sven Smit, Alan FitzGerald, and Vivien Singer in World Economic Forum. 

The future of productivity and economic growth in the US and Europe is uncertain. A trio of economists has reviewed evidence from eight economic sectors to lay out the key conditions for sustained recovery from the COVID-19 crisis. They conclude that the weak productivity growth that followed the Global Crisis can be averted if two conditions are met, write Hans-Helmut Kotz, Jan Mischke, and Sven Smit in World Economic Forum. 

As the greatest economic disruption of this generation, the COVID-19 pandemic also will have a lasting impact – one that may be more varied and divergent than ever before, write Jaana Remes and Sajal Kohli in Project Syndicate.

The future of productivity and economic growth in the US and Europe is uncertain. This column reviews evidence from eight economic sectors to lay out the key conditions for sustained recovery from the Covid-19 crisis. It suggests that the weak productivity growth that followed the Global Crisis can be averted if private and public sectors act together to strengthen demand and diffuse supply-side restructuring to all firms, write Hans-Helmut Kotz, Jan Mischke, and Sven Smit in VoxEU. 

The danger now is that the pandemic-era acceleration of automation and digitalization impedes growth in labor income and consumption, write Laura Tyson and Jan Mischke in Project Syndicate.

Serving the interests of stakeholders, employees, communities and the broader public is not necessarily at odds with the imperative of profit, write Jan Mischke, Lola Woetzel, and Michael Birshan in Milken Institute Review.

The COVID-19 pandemic caused an unprecedented worldwide consumption decline and dramatically changed consumer behavior almost overnight. But what happens once the pandemic is over? Does everything simply return to “normal,” much like flipping a switch? These are questions discussed by Jaana Remes in Brookings. 

A sustained recovery to an economy with full employment and ample “good jobs” will require a significant reallocation of workers from the low-wage, low-skill positions that have been eliminated to new ones requiring higher skills and more training, write Laura Tyson and Susan Lund in Los Angeles Times.

Although some government pandemic-support programs have combined ambitious design with effective delivery, many fall short in one or both areas, write Anu Madgavkar and Olivia White in Project Syndicate.

While the U.S. economy is looking up as growth rates improve and another stimulus package is being explored, hope for a return to pre-pandemic levels of employment for women is still distant. Recent projections based on economic scenarios modeled by McKinsey and Oxford Economics estimate that employment for women may not recover to pre-pandemic levels until 2024—two full years after a recovery for men, write Kweilin Ellingrud and Liz Hilton Segel in Fortune. 

Only by working together can governments, scientists, businesses, and the public unleash the power of biology for good while effectively managing the risks, write Matthias Evers and Michael Chui in Project Syndicate.

Skills development must be available to everyone everywhere throughout their lives, write Lola Woetzel and Jeongmin Seong in China Daily. 

Jamille Bigio, Kweilin Ellingrud, Mekala Krishnan, Anu Madgavkar, and Rachel Vogelstein discuss how to counter the pandemic’s gender-regressive shock in Foreign Affairs. 

The COVID-19 pandemic has increased threats to food security around the world, underscoring the need for innovation to make agriculture and aquaculture more resilient and efficient, write Michael Chui and Matthias Evers in Project Syndicate.

Asia’s rapid emergence as a global technological leader over the last decade is a testament to the power of collaboration, write Lola Woetzel and Jeongmin Seong in Project Syndicate.