DAVOS, Switzerland (AP) — One economic expert at Davos says there's no rest for the weary: governments must not back off from making unpopular reforms that will help their economies grow faster.
Angel Gurria, secretary-general of the Organization for Economic Cooperation and Development, says "we have to keep fighting, keep pedaling" to improve educational opportunities, labor laws and tax codes to promote long-term growth.
Central banks already have cut interest rates as much as they can and governments can't afford more stimulus spending as they try to reduce debts, Gurria told The Associated Press on Saturday at the World Economic Forum in Davos, Switzerland.
He said the key now was to focus on structural reforms that will make countries' economies and labor markets more competitive.
"This incipient, hesitant recovery needs to be consolidated," Gurria said. "We ran out of room on the monetary side, we've run out of room on the fiscal policy side, so what you need is to go structural. "
"You need to go for education, for innovation, for more competition, for tax structures that are conducive to investments and job creation, you need to go for flexibility in the labor markets, for flexibility in the product markets," he said. "These are the things that are going to keep you going long term."
The OECD is a group of 34 countries that seeks to promote global economic development. It is mostly made up of advanced economies such as the U.S., Britain, Germany and Japan, but also includes emerging economies like Chile, Mexico and Turkey.