No notable improvement has been observed in the past several years, either. In particular, in line with the sluggish rate of increase in total factor productivity (TFP), which reflects technological advances, the rate of increase in labor productivity – which considerably affects firms’ wagesetting behavior, which in turn impacts private consumption and prices – has continued to be stagnant.
If leasing has to grow fast, it must be cost advantageous too and a lower rate of delinquencies will help operators to keep their margin with a lower spread.