OECD urges structural reforms to boost economic growth

The Organisation for Economic Cooperation and Development (OECD) on Monday called on both developing and developed countries to implement a comprehensive structural reform agenda to restore healthy economic growth as the world faces the challenge of economic slowdown.

"Ambitious reforms can create a strong growth," the OECD said in its annual report titled "2015, Going for Growth."

The report was released here ahead of a meeting of G20 finance ministers and central bank governors scheduled to start later Monday.

The report, launched by OECD Secretary-General Angel Gurria and Turkey's Deputy Prime Minister Ali Babacan, identified structural reform priorities to boost real income for each OECD country and Brazil, China, India, Indonesia, Russia and South Africa.

"An ambitious reform agenda can help boost jobs, productivity and support demand," Gurria said, adding that the structural reforms, combined with effective fiscal and monetary policy, will be the essential trilogy to boost growth.

In 2015, the G20 will focus its efforts on ensuring inclusive and robust growth through collective action, Babacan said.

"If the reforms are actually implemented, the global economy will have a 2 percent higher growth," he said.

The OECD report said that since 2013, the pace of policy reforms has slowed in most advanced economies. The emerging economies, on the other hand, are quickening the pace of reform.

Weak demand, limited budgetary leeway and high unemployment have been described as the main challenges that many governments have been facing. Endit