The construction industry “benefits” from the availability of foreign workers with wages lower than domestic workers with the same characteristics, and therefore suffers from a significant technological lag. The recent government decision to allow foreign construction companies to enter residential construction projects, if it is implemented to a significant extent, may contribute to a turnaround in the productivity trend in the industry.
Fourth, given the role of CCP participants in absorbing at least the vast majority of default-related losses in central clearing, it may be appropriate to enhance their involvement in key CCP risk management decisions as well as improving transparency on CCPs’ key risk mitigants.