OECD recommendations

Productivity has grown little in recent years and is relatively low in services. Reforms to remove barriers to entry and competition in professional services and network industries would strengthen productivity and investment, and could reduce the current account surplus. Removing barriers for women to work full-time would give them better access to stronger careers and more productive jobs. These reforms would also make growth more inclusive.

  • Improve training and recognition of immigrants’ skills.
  • Lower the tax burden on the second earner.
  • Reduce restrictive regulation in the services. Abolish price regulation in professional services, and ease restrictions on business ownership and advertising.
  • In railway transport, strengthen the regulator.
  • Improve governance, or privatise government stakes, in the Landesbanken.
  • Privatise government stakes in car manufacturing, telecommunications and postal services.



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Productivity - Germany

Source: OECD May 2017 Economic Outlook database


 Key publications

Fuentes Hutfilter, A., A. Kappeler, D. Schneider, G. M. Semeraro (2016) Boosting investment performance in Germany. Forthcoming as OECD Department of Economics working paper.

Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung (2015), Jahresgutachten 2015/16. Siebtes Kapitel: Produktivität: An den Ursachen ansetzen. 

Christian Rammer, C. und B. Peters (2016) Investitionsschwäche oder Strukturverschiebung der Investitionstätigkeit? Zur Rolle immaterieller Investitionen für die Wettbewerbsfähigkeit von UnternehmenZEW Discussion Paper No. 16-037.  

Institutions icon Productivity - enhancing institutions

Several independent, private and public, economic research institutions study productivity performance, its determinants and policy implications. Moreover, they have close links with local universities. These include:

Centre for European Economic Research (ZEW) 

The German Institute for Economic Research (DIW Berlin) 

The Kiel Institute for the World Economy

The CESifo Group  

The Halle Institute for Economic Research 

The Council of Economic Experts is an independent academic body advising German policy makers on questions of economic policy. It was set up by law in 1963 with the objective of assessing the macroeconomic development of Germany. It also aims to aid the public and relevant institutions in making informed judgments about economic developments. 


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