There has been a broad-based slowdown in productivity growth since the global financial crisis, affecting the majority of advanced economies and emerging market and developing economies (EMDEs).  Productivity growth is the primary source of lasting income growth, which in turn is the main driver of poverty reduction. Whereas the one-quarter of emerging market and developing economies (EMDEs) with the fastest productivity growth have reduced their extreme poverty rates by an average of more than 1 percentage point per year since 1981, poverty rates rose in EMDEs with productivity growth in the lowest quartile. The broad-based slowdown in labor productivity growth over the past decade has raised concerns about progress in achieving development goals.

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