In order to reap the full benefits from our monetary policy measures, other policy areas must contribute more decisively to raising the longer-term growth potential and reducing vulnerabilities. The implementation of structural reforms in euro area countries needs to be substantially stepped up to increase resilience, reduce structural unemployment and boost euro area productivity and growth potential.
The impact of such population decline is serious, especially in regional economies (Chart 8). As for the other component, labor productivity, the average growth rate over the past 20 years has been around 1.0 percent.