Global growth to slow as wage inequality rises over coming decades, says OECD

A slowdown in global economic growth and a continuing rise in income inequality are projected for the coming decades, according to a new OECD study which looks beyond the crisis at what the world could look like by 2060.

Ageing populations in many OECD countries and the gradual deceleration from current high rates of growth in the large emerging economies will bring global rises in GDP down from an annual average 3.6% in the 2010-2020 period to an estimated 2.4% in 2050-2060. Innovation and investment in skills will be the predominant drivers of growth.

Policy Challenges for the Next 50 Years says unless CO2 emissions are reduced, climate change could curb global GDP by 1.5% by 2060 and by nearly 6% in South and South-East Asia. Technical advances will raise demand for high-skilled workers. Without a change in policy, OECD countries would face a further large increase in earnings inequality by 2060, bringing them close to the level seen in the United States today. Rising inequalities threaten growth, most notably by blocking economic opportunities.

See full Press Release: http://www.oecd.org/newsroom/global-growth-to-slow-as-wage-inequality-rises-over-coming-decades.htm