McKinsey & Company, ‘Will Productivity and Growth Return After the COVID-19 Crisis? published its report. The report predicts the potential for an annual increase of 1% in productivity until 2024. The calculations show that this predicted increase in productivity; It reveals that it will create an increase of 3 thousand 500 dollars per capita in the US GDP per year.
McKinsey’s business and economics research arm, McKinsey Global Institute (MGI), predicts a 1% annual increase potential in productivity until 2024, taking into account current data and the results of
Efficiency increase expectation in health services 2%
Emphasizing that digital transformation and automation accelerate the productivity increase of companies during the pandemic period, McKinsey & Company Turkey Country Director Can Kendi said, “The transition to an agile organizational structure and the implementation of new business models are among the prominent opportunity areas in this regard. However, in order to realize this potential in productivity growth, these actions by companies need to be more widespread and demand more robust. When these conditions are in question, we expect the highest productivity increase on the basis of sectors to be experienced in health services, with a rate of 2%. Behind this increase is the dissemination of remote health applications. There is similar potential in construction, with faster adoption of digital and industrialized methods. In addition to these, we anticipate that the information technologies industry and especially the retail industry, which shines thanks to the growing e-commerce, will maintain its high productivity potential until 2024 due to the increasing demand for digital tools and services.
The gap between leading companies accelerating digitalization and others is widening In addition to the potential for productivity gains, McKinsey experts also include in the report that the economic challenges of the pandemic and the reactions of companies may cause severe demand declines that will continue in the long term. The report showing that to date, 60% of companies prioritize efficiency in their activities rather than increase in production; reveals that the gap between leading companies accelerating digitalization and automation and others is widening. In addition, the pressures on employment and income in the long run; There is a risk of hindering consumption and investment. If the number of companies that cannot invest and have difficulty in growing is large, productivity growth may remain low. In general, if no action is taken, in 2024; Between potential supply and basic demand, a 6% gap could occur, with a financial value of approximately $2 trillion.
McKinsey & Company in the report; highlights three key issues that companies and decision-makers need to address. Chief among these is the continuation and diffusion of innovations and other advances that can potentially increase productivity. Secondly, by implementing exemplary practices of companies that can lead in productivity increase; It also needs to support employment, average wages and demand. It is emphasized that the third issue that McKinsey experts recommend to prioritize is to both increase investments and direct them to the right places.
Eight sectors that shape national productivity were scrutinized
The economic effects of the COVID-19 pandemic, II. It went down in history as one of the deepest crises that affected both supply and demand since World War II. MGI, supply and demand scenarios; researched across countries and sectors, revealing potential pathways for productivity growth up to 2024. During the preparation of the report; 5,500 companies in the USA, the six largest economies in Europe; France, Germany, Italy, Spain, Sweden and England were examined. 8 sectors that play a decisive role in national productivity rates; retail, information technologies, health, banking, pharmaceuticals, automotive, construction and finally travel, transportation and logistics groups were brought under the spotlight. In addition, the results of a new executive survey conducted on a global scale were used.
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