As a background document for the Policy Contribution ‘Compositional effects on productivity, labour cost and export adjustment’, this working paper presents detailed results for 24 EU countries on:
• The sectoral changes in the economy;
• The unit labour costs (ULC) based real effective exchange rate (REER) and its main components;
• Export performance.
The ULC-REERs are calculated:
• For the total economy, the business sector (excluding agriculture, construction and real estate activities), and some main sectors;
• Using both actual aggregates and fixed-weight aggregates, as the latter are free from the impacts of compositional changes;
• Against 30 trading partners and against three subsets of trading partners: euro-area, non-euro area EU, non-EU.
• The REERs calculated in this paper are freely downloadable.