http://www.oecd.org/eco/going-for-growth/

An opportunity that governments should not miss

Buenos Aires, 19 March 2018

Economic Policy Reforms:

Going for Growth 2018

@OECDeconomy

@OECD

Global growth is back to cruising speed

2

Real GDP, year-on-year growth

0

1

2

3

4

5

6

7

8

9

0

1

2

3

4

5

6

7

8

9

2003-07

2011-15

2016 2017 2018 2019 2003-07

2011-15

2016 2017 2018 2019 2003-07

2011-15

2016 2017 2018 2019

World G20 Advanced G20 Emerging

Per cent

Note: Average of annual growth rates for 2003-07 and 2011-15. OECD Projections for 2018 and 2019.

Source: OECD, Interim Economic Outlook, March 2018.

3

Jobs are being created

Employment rate

Note: All persons aged 15-64 years.

Source: OECD Short-Term Labour Market statistics; and OECD calculations.

Euro area

United States

Japan

4

More rapid job gains are benefiting all groups

Source: OECD Employment database.

Employment rate

84

86

88

90

92

94

96

98

100

102

104

84

86

88

90

92

94

96

98

100

102

104

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

15-24 year-olds 25-64 year-olds

Low skilled (below upper secondary education) High skilled (tertiary education)

Employment as % of population in the group (2007=100)

5

But most people in many OECD countries have seen

little or no income growth for a decade

Household real disposable income OECD average

Note: The OECD average is a simple average of the 17 OECD member countries for which data is available for the

whole period.

Source: OECD Income Distribution database; and OECD calculations.

Top 10%

Bottom 10%

Median

6 Source: OECD Economic Outlook database; and OECD calculations.

Rising depreciation rates are holding down net investment in productive capital

Investment as per cent of productive capital stock

Gross investment is coming back, but net

investment is still weak

-1

0

1

2

3

4

5

6

7

8

9

DEU FRA GBR ITA JPN USA

% A. Gross investment

2014-16 1997-07

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

DEU FRA GBR ITA JPN USA

% B. Net investment

2014-16 1997-07

The take-up in digital technologies is

uneven

0

20

40

60

80

100

0

20

40

60

80

100

Broadband E-purchases Cloud computing E-sales Big data RFID

Median

Diffusion of selected ICT tools and activities in enterprises, OECD countries, 2016

Note: Radio frequency identification (RFID) is a technology that enables contactless transmission of information via radio waves.

RFID can be used for a wide range of purposes, including personal identification or access control, logistics, retail trade and

process monitoring in manufacturing. For RFID, data refer to 2014.

The widening productivity gap - particularly in

digitally-intensive services

Average of MFP across 2-digit sectors (log, 2001=0)

ICT-intensive services

Non ICT-intensive services

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

Frontier firms

Laggards

Top 10%

Top 2%

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

Frontier firms

Laggards

Top 10%

Top 2%

Source: Andrews D., C. Criscuolo and P. Gal (2016), The best versus the rest: the global productivity slowdown, divergence across firms and the role of public policies, OECD Productivity Working Papers No.5

The pace of structural reform is modest

9

Responsiveness rates to Going for Growth recommendations Fully coloured bars refer to the share of fully implemented reforms

Note: The estimated rate of responsiveness is captured by the Going for Growth indicator of reform responsiveness. For 2017,

reforms in the process of implementation are included to ensure comparability with previous two-year periods. Emerging

economies include Chile, Mexico, Turkey, Argentina, Brazil, China, Colombia, Costa Rica, Indonesia, India, Russia and South

Africa. Advanced economies include all non-emerging OECD member countries and Lithuania.

0

5

10

15

20

25

30

35

40

45

0

5

10

15

20

25

30

35

40

45

2011-12 2013-14 2015-16 2017 2011-12 2013-14 2015-16 2017

Per cent

In process of implementation

In process of implementation

The Going for Growth priority selection

framework

Promote business

dynamism and the diffusion of

knowledge

Firms

Unlock skills development and

innovation capacity

Skills

Help workers benefit from a fast-changing labour market

Workers

3 broad categories of recommendations

• Barriers to entry, competition, exit, trade and FDI,

• Structure and efficiency of the tax system,

• Legal and physical infrastructure

• Primary and secondary education

• Higher education and VET

• R&D policies

• A more inclusive labour market (gender, migrants, low-skilled, etc.)

• ALMPs and social benefits

• Labour mobility and health sector

• Labour market regulation

GfG 2017 priorities to achieve strong,

inclusive growth remain valid

0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

80

90

100

Percentage

Skills Workers Firms

Going for Growth 2017 reform recommendations

Reform progress is slow on education

13

Reform intensity by area Share of implemented Going for Growth recommendations, selection of largest reform areas

Note: share of recommendations in total recommendations presented on the left margin.

0 10 20 30 40 50 60 70 80 90 100

Regulation and organisation of the labour market

Active labour market policies and Social benefits

A more inclusive labour market (gender, minorities,migrants, low-skilled)

Physical and legal infrastructure

Tax structure

Barriers to entry, competition, trade and FDI

R&D and innovation

Higher, vocational and training

Primary and secondary education

4%

10%

13%

10%

10%

24%

5%

11%

8%

Wo

rkers

Fir

ms

Skill

s

Fully implemented and in process of implementation Limited steps or no action taken

Some significant actions were taken

(examples)

Promote business dynamism and the diffusion of knowledge Firms

Countries with significant actions taken (including in-progress)

Tax structure

Physical and legal infrastructure

Barriers to entry, exit, competition, trade and FDI (small) measures in

a large number of countries

Unlock skills development and innovation capacity Skills

Some significant actions were taken

(examples)

Countries with significant actions taken (including in-progress)

Primary and secondary education

Higher education and vocational education and training (VET)

(small) measures in

a number of countries

R&D policies (small) measures in

a number of countries

Help workers benefit from a fast-changing labour market Workers

Some significant actions were taken

(examples)

Countries with significant actions taken (including in-progress)

A more inclusive labour market (gender, minorities, migrants, low-skilled…)

Active labour market policies and social benefits , health and mobility

GRC, ITA, CHN, GBP, FIN

Regulation and organisation of the labour market (EPL, minimum wages, wage bargaining, taxation)

FRA, KOR,

Reforming across several dimensions

can bring synergies

Actions taken across several areas of Going for Growth recommendations Fully implemented and partially implemented reforms, share of all countries (%)

0

5

10

15

20

25

30

35

40

45

0

5

10

15

20

25

30

35

40

45

Skills & Workers & Firms Skills & Workers Firms & Workers Firms & Skills

Advanced economies

Emerging economies

Countries tend to reform across several

areas

At least one action taken on each recommendation category Fully implemented and partially implemented reforms, share of all countries (%)

• Favourable economic conditions for reforms should not be wasted.

• In 2017, the pace of reforms is modest in both advanced and emerging economies, but some bold actions have been taken.

• The intensity of reforms has varied across policy areas:

– In promoting business dynamism and knowledge diffusion (“firms”): several significant measures on infrastructure and taxes but less on barriers to entry, competition, exit and trade.

– Not much in boosting higher education and innovative capacity (“skills”),

– Significant reforms in helping workers to cope with potentially rapid changes in jobs and tasks (“workers”).

• A coherent reform strategy is crucial to reap synergies, manage trade-offs and ensure that the benefits are broadly shared over time.

OECD Going for Growth 2018:

Main findings

http://www.oecd.org/eco/going-for-growth/

For more information

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