Despite substantive efforts to re-ignite recovery, global economic growth remains low and unemployment persistently high. The Global Competitiveness Report 2015-2016 calls for productivity-enhancing reforms to break with this pattern.
Seven years after the beginning of the financial crisis in 2008, its consequences are still being felt around the world. The recovery has been less robust, more uncertain and taken longer than many expected, suggesting a “new normal” of subdued economic growth, lower productivity growth and high unemployment. Recent geopolitical shocks – from the crisis in Ukraine to conflicts in the Middle East, terrorism and the migrant crisis – have added to economic difficulties.
Addressing constraints to growth on the supply side could go a long way to restoring growth. Through a systematic assessment of the drivers of productivity, the Report identifies priority areas for structural reforms.