National accounts other: Multifactor productivity 2020
Multifactor productivity decreased in 2020
Statistical news from Statistics Sweden 2022-06-07 8.00
Multifactor productivity (MFP) decreased with 2.1 percent in 2020 compared with 2019. In a recession MFP often becomes negative. The business sector’s value added decreased by 2.2 percent in 2020 compared with 2019.
Multifactor productivity refers to the part of growth that cannot be explained by an increase in the production factors labour force or capital. In brief, multifactor productivity reflects the overall efficiency of the production process or of the technical development.
Multifactor productivity made a negative contribution to growth in value added in 2020. This is common in a recession as seen during the financial crisis in 2008-2009 when multifactor productivity made a sharply negative contribution to value added. Across the time series on average, multifactor productivity accounted for almost 1 percentage point of growth in the business sector.
Multifactor productivity made a negative contribution to growth in value added for both goods- and service-producing industries in 2020, declining by 2.1 percentage point in both sectors.
Growth in overall value added were also negative for both goods- and service-producing industries in 2020, declining by 0.7 and 3.0 percent, respectively.
Across the time series on average, MFP accounted for 1.6 percentage points of growth in the goods sectors. This corresponds to nearly two-thirds of growth in the goods sectors. In the service sectors, MFP accounted for 0.4 percentage points on average across the time series. This means that MFP accounted for about one-eighth of growth in the service sectors.
Statistical Database
More information is available in the Statistical Database
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.