Structural reforms to revive growth in Europe: necessary but not sufficient

By Aida Caldera Sánchez, European Union Desk, and Nicolas Ruiz, Structural Surveillance Division, OECD Economics Department After many years characterised by output losses or quasi-stagnation, steadier growth appears to be setting in across European economies. Recent data point to an upturn in growth, the euro-area unemployment rate has finally fallen below 10%, and private-sector confidence … More Structural reforms to revive growth in Europe: necessary but not sufficient

Conquering utopia anew – Income inequality in Sweden

by Jon Pareliussen, Swedish Desk, Country Studies Branch, OECD Economics Department “Equality is a utopia (…) that must be constantly redefined and constantly conquered anew.” -Olof Palme, 30 July 1965. Equality, a long-standing hallmark of Swedish society, carries multiple benefits in terms of economic performance, trust, opportunity and well-being. Income inequality is relatively low in … More Conquering utopia anew – Income inequality in Sweden

Portugal needs stronger investment to maintain growth and improve living standards

By Jens Arnold, Portugal Desk, OECD Economics Department Portugal’s economy has successfully recovered from the strong recession that lasted until 2014. Nonetheless, the economy’s still low investment, which has declined far more than in other Euro area countries, remains a source of concern (Figure 1). Since 2012, investment has hardly exceeded the depreciation of the … More Portugal needs stronger investment to maintain growth and improve living standards

Strengthening economic resilience: What lessons to draw from the post-1970s record of severe recessions and financial crises

By Alain de Serres, Filippo Gori and Mikkel Hermansen, OECD Economics Department Major global crises such as the 2008-09 episode are mercifully rare, but severe recessions have been quite frequent among OECD countries over the past four decades.  Even when they do not inflict long-lasting economic damages, they often entail significant costs in terms of … More Strengthening economic resilience: What lessons to draw from the post-1970s record of severe recessions and financial crises

The business climate has improved in Indonesia, but this is no time for complacency

by Patrice Ollivaud and Petar Vujanovic, OECD Economics Department The government has put a heavy emphasis on improving the business climate, thereby promoting a competitive, innovative and dynamic private business sector. Traditionally Indonesia has relied heavily on commodities, but the recent focus of policy has been on facilitating economic development and structural change by diversifying the … More The business climate has improved in Indonesia, but this is no time for complacency

The Best vs. the Rest: The Global Productivity Slowdown Hides an Increasing Performance Gap across Firms

By Dan Andrews (Senior Economist, Economics Department), Chiara Criscuolo (Senior Economist, Directorate for Science, Technology and Innovation) and Peter Gal (Economist, Economics Department) Well-known global companies such as Google, Apple and Amazon of the digital era as well as more traditional ones of the likes of BMW, L’Oreal and Nestlé have recorded impressive productivity gains over the … More The Best vs. the Rest: The Global Productivity Slowdown Hides an Increasing Performance Gap across Firms

Inequality in Denmark through the looking glass

By Mikkel Hermansen, Structural Surveillance Division, OECD Economics Department Although Denmark is one of the least unequal countries in the world, it has like many other OECD countries experienced a rise in income inequality. But by exactly how much has the Gini coefficient risen over the last decades? There is significant disagreement between various official … More Inequality in Denmark through the looking glass

Weighing up the Growth Dividends from Structural Reforms

by Balázs Égert and Peter Gal, OECD Economics Department In many OECD countries, economic growth has yet to recover the lost ground suffered in the aftermath of the financial crisis. In some of them, unemployment has been persistently high, investment rates disappoint, and productivity is extremely sluggish – a “low growth trap”. Put differently, all three … More Weighing up the Growth Dividends from Structural Reforms

The Walking Dead: Zombie Firms Stifle Economic Recovery Prospects

By: Müge Adalet McGowan, Dan Andrews and Valentine Millot – Structural Policy Analysis Division, Economics Department, OECD. With the global economy stuck in a low growth trap, it is crucial to understand the factors behind the weak recovery in potential output growth, and particularly the barriers to productivity growth. New research shows that this dynamic … More The Walking Dead: Zombie Firms Stifle Economic Recovery Prospects

Does growth lead to inequality? It depends.

By Orsetta Causa, Mikkel Hermansen and Nicolas Ruiz, Structural Surveillance Division, OECD Economics Department Widespread increases in inequality over the past three decades have raised the question of whether growth in itself is a driver of income inequality. Considering that correlation often tells little about causation, this question is less trivial than may appear at … More Does growth lead to inequality? It depends.