The gap in GDP per capita relative to the upper half of OECD countries remains large although it has been narrowing steadily since the global financial crisis. Employment has been increasing and labour productivity growth has also contributed to narrowing the gap.
Income inequality, which is around the OECD average, has moderately decreased in recent years. Greenhouse gas emissions per capita are high and failed to decrease over the past two decades.
Some of the priorities identified previously in Going for Growth – on skill shortages and the high structural unemployment – have been addressed, notably by boosting vocational education, encouraging the recipients of disability benefits to return to work and by reducing the labour tax wedge on low-income earners.
Improving research collaboration between domestic and foreign institutions, strengthening infrastructure, in particular by expanding access to European transport networks, and shortening corporate insolvency procedures would accelerate productivity growth. Further strengthening vocational education and training would boost productivity of low wage workers, thereby making growth more inclusive. Incentives for greener buildings and a smart electric grid would help improve energy efficiency, which is similar to the advanced OECD countries.
