Some of the slowdown in productivity is also a reflection of the economy being relatively fully employed in recent years. It is also possible, however, that the slowing in productivity growth is due to the fading effects of the earlier economic reforms.
Output growth has not slowed as much as productivity in recent years, because businesses have been applying increased amounts of labour, and particularly capital, to production. Business investment in recent years has risen to a very high level relative to GDP, one of the highest among the developed economies (Graph 2). Employment growth has also been  BIS Review 108/2010  3  strong.