Per capita growth declined steadily over the 2000s. Low productivity is at the root of a large income gap vis-à-vis the OECD average. Several structural bottlenecks are holding back productivity and a new wave of structural reforms is needed to raise the economy’s growth potential.
- Complete the implementation of zero licence procedures and undertake a comprehensive reform of territorial development legislation.
- Reduce the corporate debt overhang to facilitate re-source reallocation and rekindle investment.
- Improve the business environment by increasing competition in electricity, ports and professional services.
- Continue to scale-up vocational education and training, including in post-secondary education.
- Enhance innovation policies and strengthen the link between research and business.
- Reduce labour market duality to boost young people’s employment prospects, strengthen incentives to invest in skills and reduce labour market inequalities.
Source: OECD May 2017 Economic Outlook database.
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Productivity - enhancing institutions