Thus, in the euro area the financial services sector seems to have to some extent contributed to two important developments in labour productivity over this period: (1) the sharp slowdown in labour productivity growth in the euro compared to the period 1980-1995; (2) the emergence of a significant labour productivity growth gap between the euro area and the US.
Weak productivity developments in the financial services are also evident if we look at total factor productivity growth, a factor generally believed to have played a key role in determining the emergence of a significant output growth gap between the US and the euro area over 1996-2005.