Another growth model is possible

After decades of rapid catch-up, growth is slowing in China. In the United States, and especially in Europe, real GDP growth remains sluggish. While the succession of major crises has of course contributed to the slowdown in growth, it has above all revealed the weaknesses of a growth model that has run out of steam. Productivity gains, the most common factor in growth models, have reached alarmingly low levels: after having been substantial in the 2000s with the revolution in communication technologies, they have fallen to zero in the euro zone. While some see the development of artificial intelligence as a possible driving force behind the next technological revolution, applications are still limited and do little to bolster the poor innovation figures. A massive reindustrialization effort, particularly in environmental transition sectors, could stimulate productive investment, but industrial competitiveness will require skills and human capital that still need to be trained. Finally, won’t demographic slowdown and scarcity of resources condemn us to sluggish growth?