High salaries drove growth but reduced earnings.

(c) Material damages and loss of earnings, including loss of earning potential

Africa s Inclusive Growth Potential

With time, they could leverage retained earnings, increasing their lending potential without additional paid in capital.

The answer depends on two key variables the discount rate and future earnings growth.

The growth rate will be lower if earnings are used to buy back shares.

So the growth potential is correspondingly larger.

After all, bets on leadership, vision, and earnings potential should not be limited to investments in California based technology start ups.

Yet another reason for the correction is that valuations in stock markets are stretched price earnings ratios are now high, while growth in earnings per share is slackening, and will be subject to further negative surprises as growth and inflation remain low.

That growth model has now almost exhausted its potential.

Russia s economy is now hostage to potential global growth.

On the contrary, the real question is why the increase in stock prices has not outpaced growth in corporate earnings.

Unit labor costs have risen, and potential output growth has fallen.

Most local forecasters now put Brazil s growth rates well below potential output.

Family earnings

Not anymore. Although growth may exceed the Commission s forecast, there are reasons to be concerned about the eurozone s growth potential.

With economic growth continuing, the potential risk posed by this debt will diminish.

They are wrong, however, about Europe s prospects for achieving its restricted growth potential.

This is the kind of global environment that diminishes every country s potential growth.

Continued progress in these areas will increase the region's resilience and growth potential.

The expansion of renewable energy production also holds great potential for boosting economic growth.

The software industry has been hailed as a potential engine for Egypt s economic growth.

We recognize the potential of South South cooperation in promoting economic growth and development.

Ethiopia s development potential is closely tied to seasonal rains, so high rainfall variation, together with lack of infrastructure, has undermined growth and perpetuated poverty. A single drought can cut growth potential by 10 over an extended period.

Crises are typically associated with a drop not only in actual growth, but also in a country s growth potential, owing to deferred investment.

But the potential for explosive growth has usually been seen only in the manufacturing sector.

Indeed, Giannetti and Simonov discovered that the average income of entrepreneurs was lower in high entrepreneurship municipalities than in the low entrepreneurship ones. Similarly, studies from other countries show that entrepreneurs often have lower initial earnings and earnings growth than they would have as employees.

So here, too, the logic points to a vicious circle Slower growth leads to artificial remedies and further erosion of long term growth potential.

A World Bank study found that under nutrition can cost an individual up to 10 of his or her potential lifetime earnings, and as much as 3 of a country s GDP.

But weak regional linkages limit small firms growth potential, forcing them to depend on state patronage.

Most emerging economies may be returning to growth, but they are performing well below their potential.

That growth of the labor force will raise potential GDP by only about 0.5 per year.

Given entrepreneurship s potential to drive innovation and GDP growth, supporting such efforts is in everyone s interest.

Structural reforms are also necessary in most European economies to bolster competitiveness and boost potential growth.

That said, some trends may be having the opposite effect on expectations for earnings growth. More than two fifths of the S amp P 500 s earnings come from external markets, some of which, like Europe and Japan, are barely growing, while others, like China, are slowing.

Five year real earnings growth on the S P 500 set an all time record in the period ending in the first quarter of 2007, at 192 .

These gaps are problematic, but, as Lewis emphasized, they also constitute a potential engine for economic growth.

China s long term growth potential and that of the rest of developing Asia is not pre defined.

In this sense, China has a rare opportunity to expand its growth potential by stimulating domestic demand.

Indeed, one of the big puzzles of the US stock market recently has been low price volatility since around 2004, amid the most volatile earnings growth ever seen.

After all, advanced countries account for about two thirds of global GDP, so slow growth in these countries will inevitably impede global growth and truncate the growth potential of much of the developing world.

In China, for example, rapid economic growth after the late 1970s was associated with a significant rise in inequality. Roughly half of the increase was the result of urban rural earnings gaps, which also acted as the engine of growth.

But that requires abandoning an anti growth mentality and using our enormous potential to create a brighter future.

By the end of his tenure, the rate was down to 1.5 , restoring the country s potential for growth.

These will be created when the volume of operations is low, but potential for portfolio growth is high.