Focus on long-term governance is correct approach to boost sustainable growth

Slow and unpredictable economic growth is the greatest challenge we face today. But to identify new sources of growth we have to understand some fundamental challenges in the global economy and how to address them.

The first one is demographic changes. New labor force growth is concentrated in low-income countries, as almost all high-income countries and many middle-income countries face the challenges of an aging population.

The second is the narrowness of technological advances, which are concentrated in information and communications technology and are not yet impacting the bulk of the real economy. The digital economy only accounts for 4 - 5 percent of GDP and 1 - 2 percent of jobs.