Global growth has returned to pre-crisis levels, but reforms have been modest. While some countries took significant steps to promote business and boost skills/innovation, progress on education was limited. Reforms helped workers cope with changing jobs but intensity varied across areas. Coherent multi-dimensional reforms across firms, skills, and workers could maximize synergies and share benefits broadly over time.

1. 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

2. 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. 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. 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. 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. 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

7. 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.

8. 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

9. 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

10. The Going for Growth priority selection
framework

11. 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

12. 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

13. 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%
WorkersFirmsSkills
Fully implemented and in process of implementation Limited steps or no action taken

14. 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

15. 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

16. 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,

17. 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

18. 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 (%)

19. • 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

20. http://www.oecd.org/eco/going-for-growth/
For more information
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