Overview
- INDEC published a new productivity series and updated the capital stock after about 20 years, providing the data behind the assessment of 2016–2025 performance.
- Over the decade measured, output per hour fell roughly 6% while total factor productivity declined about 7%, even though hours worked rose about 11% and capital services about 14%.
- The mismatch shows that firms used more inputs without producing proportionally more because the efficiency of combining labor and capital fell.
- A modest improvement appeared in 2025 when PTF rose 2.8% year-on-year and hourly productivity edged up, but those gains came from a few sectors and did not reach the bulk of workers.
- Analysts say reversing the trend will require firm-level technology and process upgrades plus stronger institutions and regulatory changes to encourage investment and sustain broader productivity gains.