The Organization for Economic Co-operation and Development (OECD) warns that global productivity is entering a new era of low growth unless major structural reforms are implemented.
The OECD believes that the momentum for the global economy remains sluggish, reinforcing fears that lower growth rates in metallurgy, engineering, oil and gas and other important industries are possible compared to the crisis levels.
OECD chief Angel Gurria said that “These problems already exist in developed countries and are currently engulfing market economies, fueled by high unemployment. the reforms were scattered and are unlikely to completely solve the existing problems.
The OECD report was reviewed at the meeting of the G20 finance ministers in Sydney this weekend. They also agreed that economic growth will remain below the level needed to get people back to work.
In a statement released at the end of the talks, central bank ministers and governors pledged: "Pursue ambitious but realistic policies to raise collective GDP by more than 2 percent over the next 5 years.
Ministers hope there will be interesting new ways to finance infrastructure, especially in developing countries, with the potential for higher growth, but hardly more than 2 percent growth.
