Korea is experiencing a spell of slower growth and low inflation. Productivity is low due to large gaps between manufacturing and services, and large companies and SMEs. Problems in the labour market raise inequality and poverty, and discourage employment.
Danes enjoy high living standards and wellbeing, not the least because of the reform willingness of their governments. Yet, the economic recovery has been fragile and GDP per capita is still below its precrisis levels, although Gross National Income has received a boost from favourable term of trade developments.
Hungarian economy expanding but reforms needed to boost skills, business investment and incomes
Germany is achieving good labour market outcomes and the recently introduced minimum wage has improved the situation of low wage earners. Main challenges are subdued investment, population ageing as well as the employability of refugees. Strengthening entrepreneurship and competition would boost investment. Policies could do more to help parents to reconcile professional and family obligations.
Growth has been robust in Poland, but reforms are needed to sustain improvements in living standards. Developing skills and infrastructure, strengthening the labour market, public finance and green taxes, would raise growth and well-being.
Accession to the euro area confirms Lithuania’s commitment to sound and sustainable economic policies. The economy is expected to recover despite weak Russian demand.
Following a period of muted economic activity in the wake of the global downturn, growth has picked up since 2014, and gross domestic product (GDP) has recently overtaken its pre-crisis peak.
The Israeli economy has strong fundamentals, employment is rising, inflation is low, the external surplus is comfortable, and public finances are in good shape, but productivity performance is weak, income inequalities and poverty are high.
Chile has made major gains in prosperity. Continued reforms to labour markets will help growth to be shared more equally. Ensuring that economic gains are sustainable will require sustained efforts to foster entrepreneurship and innovation.
Ireland has successfully overcome a large economic crisis. Getting the long-term unemployed back into work is the key to spreading the benefits of the recovery widely. Ireland can do more to facilitate skilled migration. Raising productivity requires boosting competition and innovation.