The impact of the pandemic and war in Ukraine provides an opportunity for governments to implement the structural reforms needed for strong, sustainable growth and a more competitive economy, the OECD said on Tuesday.
In a report released on Tuesday entitled Growth Plans to 2023, the Organization for Economic Co-operation and Development (OECD) said the “unprecedented” policy responses to recent shocks “helped protect lives and livelihoods during these shocks, but continue to face long-term challenges.”
“Weak productivity growth and declining business dynamism continue to prevail in many OECD countries,” the Paris-based organization warns.
According to the OECD, labor markets continue to face structural challenges and skills shortages that hamper the efficient use of resources, as well as the absence of most growth strategies.
“To deliver stronger sustainable growth, raise incomes and living standards, and broaden opportunity overall, policymakers need to focus on a well-calibrated response to immediate pressures, as well as addressing future challenges. long-term structural reforms,” OECD Secretary General Matthias Cormann was quoted as saying in the statement.
According to an OECD representative, “Reform priorities vary across countries, but all will benefit from increasing labor force participation rates for women and older workers, stimulating competition to more efficiently reallocate labor and capital to more productive firms, and increasing incentives for innovation and necessary energy transition.”
The OECD suggests countries should improve the design of fiscal support programs, invest in structural policies to increase labor force participation, especially for women, and new policy reforms to ensure that digital transformation leads to higher productivity.
It also calls on governments to make faster progress on decarbonization to achieve climate change goals, recognizing that new actions must span both incentive-based and regulatory policies to ensure full and inclusive effectiveness.
Author: Lusa
Source: CM Jornal
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