By Own Correspondent

GLOBALLY renowned financier, World Bank (WB) has decried Zimbabwe’s depressed labour productivity amid calls for the implementation of strategic measures to bolster production.

The WB recently published Country Economic Memorandum (CEM) report calls on authorities to prioritise productivity saying it is the ultimate driver of economic growth and living standards requiring priority if the country is to become a part of the Upper Middle Income Countries (UMIC).

The report recognises that Zimbabweans currently have the required level of education to be categorised as an Upper Middle Income Country but the levels of productivity are very low.

“However, despite a well-skilled workforce, Zimbabwe’s labour productivity growth has remained depressed over the past two decades. Zimbabwe’s labour productivity level over the past decade ranks second to last among 17 Lower Middle Income Country (LMIC) economies in Sub Saharan Africa.

“Increasing productivity is essential for raising incomes and improving livelihoods. In fact, most of the difference in income per capita between countries can be explained by differences in total factor productivity (TFP),” the report said.

Based on simulations of future growth of labour and capital, the CEM says achieving high and sustained growth to converge with UMIC status will require growth rates of 8 to 9 percent per year.

“Prior to the COVID-19 pandemic, macroeconomic stabilisation and the implementation of reforms have boosted labour productivity in Zimbabwe, despite remaining lower than LMIC peers in SSA. The economy has experienced lower employment growth rates than its peers across most sectors,” the report said.

The WB believes that productivity is the ultimate driver of economic growth and living standards. Increasing productivity is essential for raising incomes and improving livelihoods.

In fact, it says, most of the difference in income per capita between countries can be explained by differences in total factor productivity (TFP).

“Based on simulations of future growth of labour and capital, achieving high and sustained growth to converge with UMIC status will require growth rates of 8 to 9 percent per year. The economy has experienced lower employment growth rates than its peers across most sectors,” the CEM added.