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In this episode of Stocks In Translation, Yahoo Finance markets and data editor Jared Blikre and producer Sydnee Fried are joined by Callie Cox, the Chief Market Strategist at Ritholtz Wealth Management, to discuss productivity’s role in shaping the economic landscape for 2025.
Productivity, which measures how efficiently goods and services are produced, is typically calculated as the total output divided by the total input, reflecting the value an economy generates through money exchange.
According to Cox, productivity is one of the most promising economic trends heading into 2025, describing it as “the antidote to inflation” and “the solution to higher growth.”
The strongest economies in history are closely linked to high productivity Cox explains. “Productivity growth right now is the highest since the mid-2000s.”
This surge in productivity, Cox notes, also has a direct impact on the broader economy and markets. High productivity “helps companies keep costs low. It helps benefit certain sectors that contribute to these productivity gains,” Cox says. “Right now, the productivity surge that we're seeing is really a product of the job market and Americans being historically employed for about three years now.”
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This post was written by Shelby Boamah.