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The income gap with respect to top performing countries is diminishing slowly. Declining labour supply and skills shortages pose risks for competitiveness. Reforms are needed to raise productivity and make more of Estonia’s human capital base.
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Colombia’s recent economic performance has been one of the most dynamic in Latin America. Embarking on a path toward inclusive growth is vital in the context of eradicating poverty, providing opportunities for its growing middle class and solidifying progress toward lasting peace. The road ahead to high-income status will be demanding and calls for major policy initiatives in education, innovation, infrastructure and rural development.
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The global economy continues to run at low speed and many countries, particularly in Europe, seem unable to overcome the legacies of the crisis. With high unemployment, high inequality and low trust still weighing heavily, it is imperative to swiftly implement reforms that boost demand and employment and raise potential growth.
Diversifying the economy and reducing labour informality are key challenges. A tax reform is crucial to boost investment and to make the tax burden fairer. An in-depth reform of the pension system would reduce old-age poverty and inequality.
Mexico has embarked on a bold package of structural reform to break free from three decades of slow growth, low productivity, pervasive labour market informality and high income inequality. Major structural measures have been legislated.
The economy is adjusting to the post mining-boom era. Long-term prosperity requires macroeconomic policy settings and structural reforms to focus on ensuring a successful rebalancing of economic activity towards non-resource sectors.
The global economy remains stuck in low gear, but is expected to accelerate gradually if countries implement growth-supportive policies. Widening differences across countries and regions are adding to the major risks on the horizon.
Curbing inflation and improving the effectiveness of public finance programmes are key challenges of macroeconomic policy in India. Complex labour regulations and infrastructure bottlenecks are holding back growth in the manufacturing sector. Raising the low female economic participation and higher spending on health would raise growth and make it more inclusive.
Structural reforms are key to achieving stronger, more inclusive and sustainable growth. Reforming the public sector together with transport infrastructures, skills and innovation policies would help raise growth and reduce regional inequality.
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