With a number of the world’s most advanced countries finally shaking off the sluggish economic growth of recent years, now is the time to step up, not slacken, the pace of reform, according to the latest edition of the OECD's annual Going for Growth report.
In a preface to the report, the OECD's Chief Economist, Jean-Philippe Cotis, cautions that cyclical buoyancy in continental Europe and Asian OECD countries must not lead to complacency. “Governments should resist the temptation to ease up on reforms aimed at boosting productivity and creating more jobs”, says Mr.Cotis.
It is in part thanks to the progress already made in reforming labour and product markets that unemployment has begun to fall in Europe, claims the report. But more needs to be done to boost long-term growth. Removing obstacles to labour force participation and job creation would increase living standards. Opening up product and financial markets to greater competition should raise productivity and rebalance national income away from business profits and into higher salaries and job creation, it adds.
See full Press Release.
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