Oecd Economic Surveys Tunisia 2018 Economic Assessment

Tunisia has experienced strong economic and social progress in recent decades and, more recently, a successful democratic transition. The convergence process has slowed down, however, due to the low level of investment since the early 2000s, while regional and labour market inequalities have ...

- Basic statistics of Tunisia, 2016 (Numbers in parentheses refer to the OECD average) - Acronyms - Executive summary - Assessment and recommendations - Reviving investment - Toward more inclusive growth: reducing inequalities through quality job creation

Tunisians are facing the worst crisis in a generation, as COVID-19 hit an economy that was already slowing down. Macroeconomic policy through fiscal stimulus and monetary easing limited the depth and severity of the recession, but the pandemic has exacerbated structural weaknesses, in particular low investment and job creation, high unemployment and informality, mismatch between skills demand and supply, and outward migration of high-skilled professionals.

Strong growth and remarkable social progress over the past two decades have made Brazil one of the world's leading economies, despite the deep recession that the economy is now emerging from. However, inequality remains high and fiscal accounts have deteriorated substantially, calling for wide-ranging reforms to sustain progress on inclusive growth. A better focus of social expenditures towards the poor would reduce inequality and ensure sustainability of public debt at the same time. This will require difficult political choices, particularly in pensions and social transfers. Reducing economic transfers to the corporate sector, in conjunction with more systematic evaluations of public expenditure programmes, will strengthen growth, improve economic governance and limit the future scope for rent seeking and political kick-backs. Maintaining the growth potential of the economy requires stronger investment, which could also raise productivity and concomitantly, the scope for future wage increases. Simplifying taxes, reducing administrative burdens and streamlining licensing would raise investment returns, while stronger competition could generate new investment opportunities in thriving, high-performing enterprises. At the same time, trade barriers shield enterprises from global opportunities and foreign competition. Fostering a stronger integration into global trade would allow firms to become more competitive and generate new export opportunities. SPECIAL FEATURES: STRENGTHENING INVESTMENT AND INFRASTRUCTURE; FOSTERING INTEGRATION INTO THE WORLD ECONOMY

Tunisians are facing the worst crisis in a generation, as COVID-19 hit an economy that was already slowing down. Macroeconomic policy through fiscal stimulus and monetary easing limited the depth and severity of the recession, but the pandemic has exacerbated structural weaknesses, in particular low investment and job creation, high unemployment and informality, mismatch between skills demand and supply, and outward migration of high-skilled professionals. Children who have been deprived of school for a long period will face severe challenges in resuming normal life. The second OECD Economic Survey takes stock of progress made since 2018 and makes recommendations in key policy areas such as public spending, state-owned enterprises, employment, education, vocational training, trade, taxation and the business environment. Implementing such reforms would produce a large growth dividend and put public debt on a more sustainable path. But unless bold action is taken soon, the crisis will have a lasting effect on the potential of Tunisia to resume its income convergence process. SPECIAL FEATURES: EMPLOYMENT AND SKILLS

Israel's economy continues to register remarkable macroeconomic and fiscal performance. Growth is strong and unemployment is low. The external surplus is comfortable, and the public debt-to-GDP ratio, already well below the OECD average, is still falling. However, Israeli society remains marked ...

Economic growth picked up in 2017, but reforms are needed to sustain Korea's convergence toward the income levels in the most advanced countries. Its labour productivity is 46% below the top half of OECD countries, reflecting problems in the service sector. In addition, productivity in small ...

Norway has high levels of GDP per capita and inclusiveness, helped by business dynamism, sound petroleum-wealth management and comprehensive welfare and public services. Retaining these successful outcomes will require the business sector to diversify and successfully exploit opportunities from globalisation and technological change, while continuing to contribute to inclusiveness. This is the theme of Chapter 1 of this Survey. In general the policy environment is business-friendly and adjustment from a “4%” to a “3%” fiscal rule has demonstrated continued good macroeconomic management. However, the house-price correction currently underway poses challenges. Also there is scope to strengthen Norway’s business environment, including through attention to competition and business insolvency, reduced state-stakes and encouragement of new “disruptive” businesses. Norway’s economy would benefit from improving value for money in public spending. This would create room for lowering taxes, including those that most strongly impact businesses. There is a tendency for high-cost options in policies and inertia in reform. Chapter 2 of this Survey focuses on transport infrastructure investment. Such investment can widen economic opportunities for business and increase welfare for households. However, realising these returns requires that transport-infrastructure investment is well chosen and implemented efficiently. SPECIAL FEATURES: BUSINESS ENVIRONMENT; TRANSPORT INFRASTRUTURE