Economic recovery in the United States is stronger than in most OECD countries, but it will remain sluggish unless new reforms are launched to boost growth, according to OECD’s latest Economic Survey of the United States.
The United States can further improve productivity in its economy by prioritizing reforms that enhance openness, diversity and competition in services markets, particularly where higher trade restrictions are observed.
A moderate recovery is under way in major advanced economies after two years of subdued growth. Overall, most indications point to a continued underlying strengthening of the pace of growth, helped by accommodative monetary policy and reduced fiscal drag.
The recovery of the US economy has kept momentum, although investment remains subdued in contrast to a comparatively good employment performance.
The United States is one of the top performers among OECD countries in terms of both productivity and labour utilisation. It has shown signs recently of a broader-based recovery taking hold with growth gaining momentum.
OECD Secretary-General Angel Gurría said that while OECD countries breathed a sigh of relief following the U.S. Congress’ steps to lift the debt ceiling and to end the partial federal government shutdown a longer term solution will need to be found.
Growth rates in the major advanced economies picked up in the first half of 2013 and should be maintained through the second half of the year. Activity is expanding at an encouraging pace in North America, Japan and the United Kingdom, while the euro area as a whole is no longer in recession.
There is no simple remedy for fixing the post-crisis global economy. But three key ingredients for sustainable long-term growth are jobs, equality and trust, said OECD Secretary-General in Washington.
The current political deadlock in the United States is needlessly putting at risk the stability and growth not only of the US but also the world economy. This comes at a time when a fragile recovery in advanced economies was underway, and when a number of emerging economies were already facing new risks.
A moderate recovery is underway in the major advanced economies, according to the OECD’s latest Interim Economic Assessment. Growth is proceeding at encouraging rates in North America, Japan and the UK. The euro area as a whole is out of recession, although output remains weak in a number of countries.