Fiscal policy needs to get smarter

Government spending needs to focus more on investment in the areas that drive sustainable growth. Especially human capital.  Recent OECD PISA scores show educational outcomes are falling, just as the skills needs of the future economy are rising.  Public debt levels are generally higher than before the pandemic, and in many countries at levels relative to GDP seen before only in wartime.  Governments need to adopt sustainable fiscal plans that balance intergenerational needs and prepare economies for the future. 

See also: OECD Economic Outlook, Interim Report February 2024.