We have long believed that technological innovation will eventually boost productivity in the sectors that successfully integrate new technologies in areas such as AI, quantum computing, biotech and robotisation. All of these have the potential to revolutionise the way businesses operate.
Productivity gains could mitigate the impact of deglobalisation and structural inflation over the next decade. Growth and inflation over the next 10 years will be significantly influenced by productivity growth, a crucial driver of long-term economic performance.
The ideal scenario would be a structural increase in productivity fuelled by public and private investment in strategic and innovative industries, including those playing a pivotal role in the transition to net-zero carbon emissions. Recent developments in AI and the pandemic-led transformation of work-from-home industries have likewise raised hopes of a fresh productivity boom.
