Australia has weathered well the global financial crisis, with its per capita GDP rising to the average of the upper half of OECD countries. However, productivity has lagged. Efforts have been made recently to improve educational outcomes, with reforms in the upper secondary and vocational sectors. Still, weaknesses remain and further actions are needed in the following areas.
Austria’s GDP per capita is below the average of the upper half of OECD countries but its relative position has slightly improved since the mid-2000s, reflecting rising labour productivity before the 2009 recession. In 2009, progress has been made to strengthen early education (kindergarten) and alleviate premature streaming of pupils in secondary schools. However, weaknesses remain and there is need for reform in the following areas.
The GDP-per-capita gap vis-à-vis best performing countries has narrowed slightly in recent years, but continues to reflect a low level of labour utilisation. There has been some progress in raising the low employment rates of older workers, though little has been done in terms of addressing geographical labour market mismatches. Weaknesses remain and reforms are needed in the following areas.
The GDP per capita gap with OECD countries is now diminishing but remains large and is largely due to comparatively weak labour productivity performance reflecting in part fairly low investment rates. Beyond the recent efforts to combat inequality through the extension of anti-poverty programmes, further actions are needed in the following areas to sustain overall economic performance.
A small gap in GDP per capita relative to the upper half of OECD countries persists, entirely the result of relatively low labour productivity. This performance shortfall could be addressed by making further progress in the priority areas below. In other fields, the federal government is pursuing a free-trade agreement with the European Union, and provinces are making headway in pricing carbon emissions.
Chile has one of the largest GDP per capita gaps with respect to the upper half of OECD countries, primarily reflecting lower labour productivity. Convergence has slowed over the past decade, mainly owing to weak productivity growth. This performance shortfall could be addressed by implementing further reforms in the areas below. Female labour participation and schooling outcomes are also likely be partly stimulated by the recent expansion of kindergarten places provided effective quality controls are put in place.
GDP per capita has soared over the past five years, rising by close to 50% cumulatively, thereby substantially narrowing the wide gap with OECD countries. As employment rates remain quite high the difference in income per capita essentially reflects lower productivity. A broad range of reforms have occurred in recent years, supporting rapid productivity gains, though progress in the following areas would help to ensure that this continues.
Several years of strong growth prior to the crisis have steadily narrowed the gaps in GDP per capita and labour productivity vis-à-vis the upper half of OECD countries, yet both remain considerable, notably the productivity gap. Progress has been achieved in improving the business environment by greater use of information technologies, but further actions are needed in the following areas.
The income gap vis-à-vis the upper half of OECD countries has widened over the past decade, with rising labour utilisation more than offset by lower productivity growth. Employment rates are high but working hours remain low. Reforms over the past few years have notably focused on raising labour supply, and on fostering green growth including through policies to reduce greenhouse gases emissions. However more needs to be done in the areas below.
There has been rapid catch-up in the wake of EU entry, but the large gap in GDP per capita vis-à-vis the upper half of OECD countries has widened again recently. This gap in living standards reflects a productivity shortfall, while labour utilisation is relatively high. To reach a higher trend productivity growth rate, structural reforms in the areas below are needed.
There is a substantial income gap relative to the upper half of the OECD as productivity and labour utilisation levels remain below the top performers. Progress has been made in financial sector reform, notably in the area of macro prudential regulation. Structural reforms in the following areas are needed to limit the medium and longterm effects of the crisis on potential output.
The GDP per capita gap vis-à-vis the upper half of OECD countries narrowed until 2008 but widened again during the recession. This gap mainly reflects lower labour productivity, but labour resource utilisation is also below the best performing countries. Recent reforms have sought to strengthen labour force participation, stem the increase in long-term unemployment and improve the efficiency of public service provision. Additional reforms are still needed in the following areas.
The income gap relative to the upper half of OECD countries has widened since the early nineties due to weak employment outcomes, especially for youth and older workers, as well as relatively short annual hours worked. The government has enacted reforms in recent years to strengthen innovation and reduce tax disincentives to investment, but additional measures are still needed, especially in the areas below.
The GDP per capita gap relative to the upper half of OECD countries has narrowed somewhat since the mid- 2000s, but a labour utilisation gap remains. Reforms of the short-time work scheme during the crisis have prevented excessive layoffs. Work incentives are also being strengthened in 2011 by phasing out the temporary supplementary benefit paid to certain long-term unemployed. However, further structural reforms are still needed in the following areas.
The income gap vis-à-vis the best performing countries, which had declined in recent years, is likely to increase again as a result of the major ongoing economic crisis. Structural reforms underway in the product and labour markets are vital to reducing the sizeable productivity shortfall and enhancing labour utilisation.
GDP per capita has converged towards the OECD average but the gap remains substantial because of large shortfalls in labour productivity and, to a lesser extent, labour utilisation. Progress has been made to raise labour supply through reductions in the tax wedge on labour income and incentives to retire early, but more needs to be done in the following areas, notably in order to raise productivity growth.
The shortfall in GDP per capita gap relative to the upper half of OECD countries shrank in the mid-2000s but has since widened as a result of the crisis. This income gap reflects relatively low labour productivity partially offset by one of the highest rates of labour resource utilisation in the OECD. While bank regulation and supervision has been recently reformed, structural reforms in the following areas are needed in order to return to sustained economic growth.
India continues to achieve one of the highest rates of GDP per capita growth in the world. Nevertheless, the income gap with OECD countries remains large, primarily reflecting low levels of labour productivity, calling for further reforms to support rapid and inclusive growth. Incremental reforms of administrative regulation introduced by governments at all levels have led to some improvement in the operating environment for business. However, more fundamental reforms are needed in the following areas.
Per capita incomes are converging towards OECD levels, but the gap remains very large mainly owing to a labour productivity shortfall. Further actions in the areas below would help to reduce this gap. In other areas, efforts have been made recently in climate-change mitigation policies by committing to greenhouse gas emissionreduction targets.
Ireland has experienced a severe set-back in living standards. Unemployment has risen steeply and labour force participation declined, resulting in a labour utilisation gap relative to the upper half of OECD countries. While the government is launching reforms aimed at improving macroprudential regulation, efforts in the areas below should be pursued to raise long-term growth prospects and avoid a structural deterioration in the labour market.
GDP per capita has moved towards the upper half of the OECD distribution since the mid-2000s but a major gap remains, reflecting a shortfall in productivity. Notable attention has been paid recently to transport infrastructure and concentration in the financial sector. However, further structural reforms are needed in the following areas.
GDP per capita and productivity have continued to decline relative to the upper half of OECD countries. Moves to improve the efficiency of public administration through results-oriented management and simplification of legislation have continued though significant impacts cannot yet be seen. Further reforms are needed in the areas below.
The income gap relative to the upper half of OECD countries has been persistent over the last decade, reflecting a large productivity shortfall. The government has announced a Growth Strategy aimed at boosting incomes, notably in the environment, health care and tourism sectors, but it needs also to focus more on the following regulatory reforms to boost demand and productivity growth.
The GDP per capita gap with the upper half of OECD countries continues to narrow while the labour utilisation rate remains the highest in the OECD. The remaining income gap is due to shortfalls in productivity, especially in services. This can be largely addressed by implementing further reforms in the areas below. Also, crisis-related measures to assist small and medium-sized enterprises should be scaled back to avoid supporting non-viable firms.
GDP per capita is the highest in the OECD despite a fall during the recession. Labour productivity has stalled as the result of labour hoarding and going forward the growth path is likely to be weaker than over recent decades. Major reforms of the school system undertaken in recent years will improve education prospects for residents, but reforms are needed in other areas discussed below.
Mexico has one of the largest GDP per capita gaps with respect to the richest 50% of OECD countries, which is almost entirely due to a persistent gap in labour productivity. Mexico is bringing its competition law in line with international best practice, but further actions in the following areas are needed to address the productivity shortfall.
GDP per capita is at par with the average of the upper half of OECD countries, due to a combination of high hourly productivity and employment offset by a low number of hours worked per employee. In 2009, the government introduced a number of policy measures to increase activation and hours worked, but in order to improve economic performance other reforms are necessary in the following areas.
A large gap in GDP per capita persists relative to the upper half of OECD countries, which is entirely due to low labour productivity. There has been progress on negotiating regional free trade agreements, reducing tax distortions and pricing carbon emissions, but reforms in the following areas are still needed.
Norway has maintained its productivity lead (including in the non-petroleum sector) over most OECD countries, and labour utilisation is also high. Structural reform in the following areas would contribute to further increase economic performance.
While GDP per capita has been catching up quickly over the last decade, the shortfall relative to the upper half of the OECD countries remains large primarily due to a labour productivity gap. The government has taken measures to attract foreign direct investment with a view to modernising the economy and increasing capital intensity. A number of other reforms need to be implemented, particularly in the following areas.
GDP per capita relative to the upper half of OECD countries has declined over the past decade, with only a modest reversal during the recent crisis. This decline has been mainly accounted for by labour utilisation, but lower productivity alone explains the large gap in income levels. Some efforts have recently been made to accelerate pension reform implementation and to make public administration more efficient. Further reforms in the following areas are still needed to improve economic performance.
The income gap with OECD countries narrowed rapidly until 2008, but remained large and widened in 2009, as Russia was relatively hard-hit by the economic and financial crisis. This income gap is almost entirely attributable to a labour productivity shortfall, making productivity-enhancing reforms a priority.
The rapid convergence in GDP per capita relative to the upper half of OECD countries observed since 2000 stopped in 2009 but productivity convergence continued. Substantial gaps in labour utilisation and productivity remain. The 2009 recovery plan introduced flexible work time accounts enabling firms to better adapt to the economic cycle. To improve longer-term economic performance further actions are needed in the following areas.
The income gap relative to the upper half of OECD countries narrowed significantly prior to the crisis, before starting to widen again. This gap is largely explained by a shortfall in labour productivity. The recent introduction of a one-stop shop for companies to reduce the burden of setting up a business, as well as personal and corporate income tax reforms, should boost performance. Further reforms are still needed in the areas below.
The GDP per capita gap with the upper half of OECD countries has failed to narrow since the transition to majority rule, although there has been some convergence in the last few years. Compared with other non-OECD countries, an unusually large part of the gap is explained by low labour utilisation. A large expansion of social grants has been important in alleviating poverty, but structural reforms would help speed up convergence to OECD income levels.
Convergence in GDP per capita has stalled, although performance compares more favourably on the basis of current international prices. Productivity growth has increased recently, in part reflecting the downsizing of residential construction, where productivity is low, whereas labour utilisation has dropped. In the housing market, enforcement of rental contracts has improved and the tax treatment of rental and owner-occupied housing has been equalised. Progress has been made notably in the labour market area, but further reforms are needed in the following fields.
The income gap vis-à-vis leading OECD economies has widened somewhat in recent years, reflecting a productivity slowdown. Employment rates are high, but average hours worked are low. Reforms of the benefit dependency scheme and labour taxation have helped support labour force participation and employment, and efforts to mitigate greenhouse gas emissions have been made. Further reforms are required, in the areas below.
The decline in real GDP per capita vis-á-vis the best performing OECD countries has stopped due to a relative increase in labour utilisation while the gap in productivity remains. Actions have been taken in several areas, notably regarding the prudential supervision of systemically important banks, including through stricter capital and liquidity requirements. Reforms in the following areas are still needed to improve trend economic growth.
The income gap vis-à-vis the upper half of OECD countries narrowed in the 2000s but remains very large, reflecting both low labour productivity and utilisation levels. Strong catch-up until the 2009 crisis reflected mainly productivity gains, while labour utilisation remained very low. A new draft Commercial Code has been prepared and should be adopted to improve financial transparency and facilitate financing investment. Structural reforms in the areas below are needed to improve overall economic performances.
Relative employment rates remain slightly below the average of the upper half of OECD countries and have slipped somewhat during the last few years. Labour productivity has converged to some extent but is still below average, leaving a significant gap in GDP per capita. Government spending on R&D has increased recently, but more needs to be done in the following areas to improve living standards further.
GDP per capita continues to be among the highest in the OECD, mainly reflecting high labour productivity. A surge in labour productivity during the recent recession has increased the performance of US workers relative to the OECD average, but relative labour utilisation has declined. Health care and financial sector reforms have recently been enacted, but more needs to be done in the following areas.
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