Improving the efficiency and development of the financial sector will not only raise that sector’s productivity but it can contribute to the better and faster allocation of capital and foster innovation and the productivity performance of the whole euro area economy. BIS Review 17/2007  1  There is much discussion of non-inflationary potential growth.
It is considered to be an indicator for assessing the flexibility and degree of competition of an economy. Has potential growth increased in Europe in recent years? In 1999, the estimates by international organisations of non-inflationary potential growth in the euro area ranged between 2.0% and 2.5%.