of sectoral labor input and total factor productivity trend growth variation on the persistent decline in long-run output …-term decline. Zooming into the reunification period, we find a pronounced decline of total factor productivity growth in …

assessed. Looking ahead, the paper presents medium-term paths for GDP based on alternative assumptions for productivity growth … total factor productivity growth. Economic policy reforms and the introduction of NAFTA may have raised trend productivity … growth in recent years. Further increases in productivity growth would appear necessary, however, to raise medium-term growth …