The OECD recently published the latest edition of its flagship report “Going for Growth,” which assesses countries’ progress in implementing structural policies since 2013, and also identifies new priorities to revive growth. The OECD’s Going for Growth analysis forms the basis of the OECD’s wider contribution to the G20 Framework for Strong, Sustainable and Balanced Growth and to G20 National Growth Strategies.
Highlights from this year’s report include:
- Structural reforms implemented since the early 2000s have contributed to raising potential GDP per capita by around 5% on average across countries. Most gains come from higher productivity.
- Further reform based on OECD best practice could raise long-term level of GDP per capita by up to 10% on average across OECD countries.
- The pace of structural reforms has slowed in most OECD countries in the past two years, but has been accelerating in major emerging markets.
- Many of the OECD’s pro-growth structural policies have little or no impact on income inequality among households. In fact, a number of reforms reduce wage dispersion and/or household income inequality (e.g. reforms for better access to education, active labour market policies and growth-friendly tax and transfer systems). Also, reducing regulatory barriers to entry and competition in sectors with large potential markets is likely to reduce income inequality.