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01-Nov-2017 14:07

By 2025 there will be 35 people aged 65 and over for every 100 persons of working age in OECD countries, compared with 14 in 1950.

Only higher potential growth can provide a lasting solution.

But when thinking about the economy, one of the key ingredients for raising productivity is openness.

Though this is a complex issue, I have no doubt that making better use of public policies to support the more vulnerable members of society, not just financially but also through education and retraining, is a vital part of the equation.

More work needs to be done in this area and it is important to learn from best policy practices.

Slower growth will in turn make it harder to work through the debt and demographic challenges facing many advanced economies.

With the population growth rate in those economies projected to slow, the burden of raising potential growth must fall on productivity.This is driven not so much by a belief that open markets no longer create wealth, but by the perception that the collateral effects of openness outweigh its benefits.