*** While abrupt reversals of the secular drivers of r* are unlikely, the economies have nonetheless been undergoing several important shifts. One of these concerns productivity growth. 2/4  BIS - Central bankers' speeches  Discussion on a potential reversal of the productivity slowdown emerged at the onset of the COVID-19 crisis when hopes surfaced that firms would increase digitalization and thus boost productivity.
While the use of digital communication technologies and remote work has indeed transformed working life, the productivity effects of these changes are currently assessed to be rather small. The pandemic may also have weighed on investment in innovation. For instance, euro area business R&D investment decelerated in 2020.