There was a striking contrast between the economic growth and levels of capital formation in the 1960–73 period and in the 1980s. The pre-revolutionary period was characterized by robust annual growth rates for GDP (6.9 percent), industrial production (9 percent), private consumption (6.5 percent), and gross fixed capital formation (7.8 percent), although income distribution was extremely unequal and the Portuguese state spent a lot of its resources on the colonial war effort. By way of contrast, the 1980s exhibited slower annual growth rates for GDP (2.7 percent), industrial production (4.8 percent), private consumption (2.7 percent), and fixed capital formation (3.1 percent). As a result of worker emigration and the military draft, employment declined during the earlier period, but increased by 1.4 percent annually during the 1980s. Significantly, labor productivity (GDP growth/employment growth) grew by a sluggish rate of 1.3 percent annually in the more recent period compared with the extremely rapid annual growth rate of 7.4 percent earlier. Inflation, as measured by the GDP deflator, averaged a modest 4 percent a year before the revolution compared with nearly 18 percent annually during the 1980s. In 1960, Portugal joined the European Free Trade Association (EFTA) as a founding member.