For instance, in the last ten years, investment in information and communication  4  BIS Review 89/2008  growth in TFP. Unfortunately, most European economies do not incorporate appropriate incentives to invest in real and human capital, to innovate and raise the flexibility and adaptability of firms when their environment changes.
It is continuing to grow, but momentum has clearly slowed. While recent data have been a bit better than over the previous couple of months, risks still look tilted to the downside. Consumer confidence remains low, the housing and labour markets remain weak, and the repair of household balance sheets still has quite a way to run.