Labour productivity growth has been negligible since the crisis. In part this reflects a compositional shift towards low-productivity sectors, such as tourism. Toughen competition policy and lower legal barriers to entry would boost productivity growth and make growth more inclusive.
Source: OECD June 2016 Economic Outlook database; OECD, Income Distribution and Poverty database; and OECD Secretariat calculations from EU-SILC – preliminary results.
McKinsey&Company (Autumn 2012) , Charting a Growth path for Iceland.
OECD (2015), Boosting productivity through greater competition, Iceland Policy Brief.
Productivity - enhancing institutions
There is no single institution in Iceland dedicated to productivity issues. The Prime Minister’s Office takes an active interest and supports the work of the Growth Forum, which is a group of politicians, social partners, business people and academics who discuss productivity issues.