There are some signs that the global outlook has started to brighten, even though growth remains modest. The outlook for medium-term growth remains weak. Reviving potential growth and improving the quality of economic growth will require governments to undertake ambitious supply-boosting structural reforms.
Productivity and long-term growth
Our focus is to design policies to deliver a dynamic business sector, well allocated resources, and productivity growth.
Key messages
Policy makers across OECD countries have been facing the challenge of slowing productivity growth for decades, despite the rapid emergence of digital technologies.
Some of these technologies, though promising for enhancing productivity and living standards, have not yet been adopted widely or effectively enough to deliver strong economic gains. Insufficient investment in intangible assets and communication networks has further hindered their potential. The COVID-19 pandemic introduced new challenges and opportunities in this landscape. AI shows significant potential to boost productivity and improve public services, but its widespread adoption also poses risks to competition and inclusion. A comprehensive policy approach is needed to accelerate digital uptake and share its benefits more equitably.
Latest report: The impact of Artificial Intelligence on productivity, distribution and growth
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 alleviate labour shortages.
