BIS Review 25/2000  2  only in the last two years that Germany has seen a recovery of investment in machinery and equipment, albeit not with double-digit rates of growth (1998: 9.2%, 1999: 5.1%).4 If the different pace of economic growth is examined more closely, it becomes apparent that US output growth is supported by a sharp increase in both employment and in labour productivity.
This is a strong indication that a balanced growth process is existing, in which labour and capital complement each other in terms of their contribution to output.