Cognitive skills, such as reading and numeric skills, are key determinants of wages, employment and long-term economic growth.
This paper reviews policies to strengthen Germany’s productivity growth and prepare for changes in labour markets brought about by new technologies.
Germany’s strong and steady growth is set to stay – real GDP is projected to grow by 2.1% this year and next. Strong domestic demand and exports drive growth. As a strong exporter of capital goods, Germany is benefiting from the global recovery of trade and investment and the recovery in the euro area.
Germany has been enjoying strong economic performance in recent years, building on strengthened domestic demand, good social outcomes and export performance. Exports have benefited from a large, productive and innovative manufacturing sector which has reinforced its position in sectors of long-standing comparative advantage, notably cars, chemical products and machine tools.
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This country note from Going for Growth 2017 for Germany identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
Population ageing is setting in earlier in Germany than in most other OECD economies and will be marked.
Non-residential investment has fallen over the past 20 years as a share of GDP and is now lower than in several other high-income OECD countries.
The German economy has steadily recovered from the 2008 global crisis. Thanks to past reforms, the labour market has proved strong and export performance has been impressive.
Reforming and deregulating the domestically oriented sectors, including network industries, crafts and professional services would release hidden growth potential and prove beneficial to the economy as a whole. It could also help strengthen domestic demand and reduce dependence on exports.
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This country note from Going for Growth 2015 for Germany identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.