Going for growth

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The past years have been dominated by shocks and crises that have profoundly changed societies and economies. GDP growth is projected to remain below trend in both 2023 and 2024, although it will gradually pick up through 2024 as inflation moderates and real incomes strengthen. Going for Growth 2023 outlines structural reform priorities for OECD and partner countries that can help set long-term growth on a stronger and more sustainable path.

Key findings:

• Potential growth is weak and requires supply-side reforms

• Comprehensive policy action is needed to put emissions on a downward path

• Tackling gender inequality can help remedy current labour market tightness

Discover what governments can do.

Global GDP growth in 2023 is projected at the lowest annual rate since the global financial crisis, with the exception of the 2020 pandemic period. Only a modest improvement is foreseen in 2023. Furthermore, medium-term growth prospects remain weak. Over the last two decades potential growth has been subdued in comparison to the period before the turn of the century, highlighting the critical role for, and need of, supply-boosting structural reforms. The current weakness of potential growth can partly be traced back to slower labour productivity growth, which in turn can be traced back to low investments and capital accumulation.

While most OECD countries have set ambitious climate targets, policies currently in place are likely to be insufficient to put greenhouse gas emissions on a downward path before 2030, making the goal of net-zero emissions by mid-century challenging to attain. Reaching decarbonisation by mid-century will require structural changes across the economy, notably through substantial reallocation of workers and capital from emission-intensive activities towards greener activities.

While progress has been made, the employment rate for women still lags that of men, and gender pay gaps remain prominent across many OECD countries. Gender gaps in labour market participation can often be traced back to barriers or incentives related to the provision of childcare and parental leave, as well as the design of tax and benefit systems. Addressing such barriers can not only boost gender equality, but also provide a remedy to the current labour markets tightness and widespread labour shortages.