Productivity growth has been slowing in advanced economies since the mid-1990s, and more recently also in emerging economies. This decline has occurred at a time of rapid technological change, increasing participation of firms and countries in global value chains, and rising education levels in the labour force, all of which are generally associated with higher productivity growth. These seemingly contradictory facts have raised interest in the ”productivity paradox” and whether the productivity slowdown is a transitional phenomenon or a longer-term condition. This chapter presents relevant evidence and discusses different views and explanations about the observed productivity trends. It also describes emerging challenges in measuring productivity and the way forward.