US productivity acceleration outpaces global peers
The guest highlighted that despite structural headwinds, the US is experiencing a significant labor productivity acceleration that far outpaces flat productivity growth in Europe.
The argument
US labor productivity growth has approximately doubled relative to its 2010s average. This trend is supported by a doubling of announced greenfield foreign direct investment (FDI) inflows from 2022 to 2025, led by semiconductor and manufacturing investments.
The thesis, stress-tested
✓ What validates it
- ✓Quarterly US labor productivity data continuing to print above 2010s averages
- ✓Continued execution of announced greenfield projects by foreign firms in the US
▸ Risks discussed
- ▸Sustainability of productivity gains if AI adoption stalls
- ▸Geopolitical disruptions affecting foreign direct investment flows
Hear it yourself
"And if we compare the period 2015 to 2019, and then we compare the period 2022 to 2025, The US announced FDI inflows for greenfield projects doubled during that time. That was more than any other region of the world. The US also in that latter period twenty twenty two to twenty five got the most FDI inflows out of any region of the world."
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