Despite a weak global context, growth has remained relatively robust. Policy has appropriately shifted towards boosting infrastructure investment, improving the business climate and reducing corruption.
Economic growth has proved remarkably vigorous given the very adverse circumstances of the past two years, which included four national elections, wars across the southern border, severe domestic tensions in the Eastern regions, trade restrictions with Russia and the inflow of millions of refugees.
U.S. economy growing steadily but key reforms needed
The Canadian economy is adjusting to the fall in the terms of trade. The main challenges are to reduce financial stability risks, boost productivity growth and make growth greener and more inclusive.
Growth picked up strongly in 2015 thanks to a combination of temporary effects, mostly absorption of expiring EU funds and low commodity prices, but the recovery since the global crisis has been uneven, mainly because of volatile investment.
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.