OECD Observer
Home
Menu
portugal,oecd,economy
Country snapshots 2017-18: Portugal

GDP growth is projected to remain subdued, at about 1.25% in 2017 and 2018. High corporate leverage and a fragile banking sector will hold back private investment and still high unemployment will restrain consumption growth. As economic lack will persist, inflation will remain low.  

united states,oecd,economy,us
Country snapshots 2017-18: United States

Economic growth is set to strengthen in 2017 and 2018, as an assumed fiscal stimulus boosts the economy and the effects of dollar appreciation, declines in energy investment and a substantial inventory correction abate. Employment has risen steadily, although the pace is expected to ease somewhat in 2017. A pick-up in wages will further support growth, offsetting somewhat sluggish external demand. 

united kingdom,oecd,economy,uk
Country snapshots 2017-18: United Kingdom

The Brexit referendum vote has reduced growth prospects and increased volatility, as reflected by the large currency depreciation. Monetary policy has mitigated the immediate impact of the shock by stabilising financial markets and shoring up consumer confidence. This projection assumes the UK will operate with a most favoured nation status after 2019, but there is considerable uncertainty about this, which will increasingly weigh on growth, and in particular private investment, including foreign direct investment. Higher inflation is projected to hit households’ purchasing power and to reduce corporate margins, weakening private consumption and investment. As growth slows, the unemployment rate is projected to rise. 

turkey,oecd,economy
Country snapshots 2017-18: Turkey

GDP growth is estimated to have slowed to under 3% in 2016, but is projected to pick up gradually to around 3.75% by 2018. The Turkish economy continues to face geopolitical headwinds and unsettled political conditions, after having weathered a coup attempt in July and engaged in military operations in Syria. 

switzerland,oecd,economy
Country snapshots 2017-18: Switzerland

Economic growth is rising but will remain moderate as the global outlook remains subdued. The labour market has been resilient, and the recent modest unemployment increase should be reversed by 2018. Interest rates are projected to remain low, helping to revive domestic demand. Deflation is ending as the currency has stabilised. The huge current account surplus will persist. 

sweden,oecd,economy
Country snapshots 2017-18: Sweden

Economic growth has been strong, but is projected to decline. Shortages of qualified labour and constructible land will slow residential investment, while uncertainty about global demand will slow business investment. Modest real wage gains will continue to damp consumption. The unemployment rate is levelling off as difficult-to-hire low-skilled workers make up a rising share of jobseekers. Labour market tightening will help lift inflation gradually. 

spain,oecd,economy
Country snapshots 2017-18: Spain

The Spanish economy has grown strongly in 2016, led by domestic demand spurred by easy monetary policy in the euro area and a fiscal stimulus. The expansionary phase is expected to continue in 2017 and 2018, with domestic demand leading the recovery, albeit at a slower pace as some factors that have contributed to boost consumption, such as low oil prices and lower taxes, will recede. Inflation will gradually pick up as the effects of low oil prices diminish, but pressures will remain moderate due to still high unemployment. 

south africa,oecd,economy
Country snapshots 2017-18: South Africa

Economic growth is projected to rebound in 2017 and strengthen further in 2018, driven by household consumption and investment. In particular, the improvement in electricity production removes bottlenecks and should boost confidence and therefore investment, provided that political uncertainties dissipate. Rising production costs, together with the earlier rand appreciation should weigh on exports. 

slovak republic,oecd,economy
Country snapshots 2017-18: Slovak Republic

Strong economic growth is set to continue, reaching 3.8% in 2018. An improving labour market will underpin household spending. Investment is expected to recover, as a slowdown in projects financed by EU funds in 2016 will be compensated by other new public infrastructure spending and stronger business investment. Exports will continue to benefit from the expansion in the automotive sector, which is ramping up production.  

russian federation,oecd,economy
Country snapshots 2017-18: Russian Federation

After two years of recession, the economy will return to growth in 2017, as higher real wages boost private consumption and lower interest rate support investment. However, structural bottlenecks continue to hinder further diversification of the economy. The strength of the recovery will also remain dependent on the rebound of oil prices. The poverty rate, which increased from 11% in 2014 to 13% in 2015, will progressively decline as the labour market strengthens and inflation slows down.  

peter georgescu, angel gurria, oecd
Peter Georgescu: "Capitalists arise: Defining the problems and consequences of inequality"

Chairman Emeritus of Young & Rubicam Peter Georgescu visited the OECD on 3 May 2016. The author gave a talk on inequality. Part of The Coffees of the Secretary-General series, you can read the complete transcript of Mr Georgescu’s presentation below.  

korea,oecd,innovation,digital,economy,samsung,smes
The innovation wave

While policy making and OECD membership helps explain much of Korea’s successes in the last two decades, major firms have had a role to play too. In fact, Korea is associated with several global household brands, as strong demand for the likes of Samsung curved televisions, Hyundai hybrid cars and K-pop hits like “Gangnam Style” jolting the Land of the Morning Calm into the sixth-largest exporter in the world. But while productivity in many large manufacturers has pushed Korea into the world’s top ten producers of cars, ships, mobile phones and DVDs, productivity in smaller firms and the service industry means overall productivity is half the level of leading OECD countries. 

oecd,economy,korea,chaebols,randall jones,crisis,growth
Korea's economy: Finding a new momentum

Korea’s transition from one of the poorest countries on earth in the early 1960s to the world’s 11th-largest economy and sixth-largest exporter by 2015 is unprecedented. 

africa, business, cities, david ménascé, enetrpreneur, informal, OECD,m-pesa
Down to business with the informal sector

Innovative business models are creating new dynamics between formal companies and informal micro-entrepreneurs.

Africa’s blue economy

The world’s oceans, seas and rivers are a major source of wealth, creating trillions of dollars’ worth in goods and services as well as employing billions of people. […] Yet Africa’s blue potential remains untapped.

economy,catherine mann,economic outlook,oecd
Slower outlook

The global economy is projected to grow at a slower pace this year than in 2015, with only a modest uptick expected in 2017, the OECD’s latest interim Economic Outlook warns. The Outlook warns that a low-growth trap has taken root, as poor growth expectations further depress trade, investment, productivity and wages.

asia,inflation,economy,finance,capital
Asia's riskier outlook

Real GDP growth slowed in most of the emerging economies in Asia in 2014 and remained subdued in 2015, the Economic Outlook for Southeast Asia, China and India 2016 says. In fact, most countries in the region recorded slower growth in 2015 than in 2014–the exceptions being Brunei Darussalam, Thailand, Viet Nam and India. China and the ASEAN region recorded their slowest growth since the start of the global financial crisis. 

Top earners: Why did the 1% get so rich?

Across much of the OECD, the share of national income taken by the top 1% of earners has risen, sometimes sharply, in recent decades. 

communications, crime, cyber, digital divide, digital economy, information, Internet, technology, trust
One Internet

The Internet is now an essential part of our lives and a critical element of the world economy. Internet penetration increased almost sevenfold in the past 15 years, from 6.5% of the world population in 2000 to 43% in 2015.

Robots versus workers

A clash between robots and workers is unlikely. Rather, disruptive technology can make workers more efficient without replacing them, and raise profits, while maintaining or increasing a company’s workforce.

digital, jobs,OECD, skills,robot
Jobs and skills in the digital economy

To many workers, the words “digital technologies” may evoke one simple, dismaying image: a human-like robot sitting at their desk, doing the work that they used to do! This anxiety is not different from the fear of coachmen witnessing the diffusion of cars in the 1920s. In a sense, coachmen were right: cars did replace horse coaches. However, their children and grand-children found new and often better paid jobs in the wealth of new activities made necessary or possible by cars: automobile manufacturing, car repair, travelling sales, home delivery, mass tourism, road building, the petrol business, and so on.

Forging a digital society

Digital innovation is an opportunity—for governments, for business, for the public, and for the way in which they relate to each other.

oecd,andy wyckoff,digital,innovation
Digital economy: Why a brighter future could be in our pocket

The digital economy is here, and growing every day, sometimes in surprising ways. As ministers gather for major meetings in Paris and Cancun, government leaders should be in no doubt about the key role they must play in securing the digital economy’s future as a driver of productive and inclusive progress.

catherine mann,oecd
The twin challenges of promoting productivity and inclusive growth

Advanced economies remain in the doldrums. People’s incomes are rising at a very low pace, especially in the lower half of the distribution. Two global trends–the slowdown in productivity and the rise in inequality–reflect the state of policy, and point to the challenges policymakers face to change prospects for their citizens and the global economy.

The economic empowerment of women for more productive and inclusive societies

This year’s OECD Ministerial Council Meeting (MCM), chaired by Chile, is devoted to productivity. Ministers will discuss what governments, firms and individuals can do to improve productivity with the aim of fostering inclusive growth. Their views will no doubt be nourished by public discussions at the annual OECD Forum, which precedes the MCM. The purpose of enhancing productivity should be to make economies grow faster and in a smarter way, while simultaneously decreasing inequalities and allowing everyone to be part of the productive system. The final goal is to improve the well-being of our citizens, providing people with better tools to meet their job requirements and to reach their full potential. This is a main challenge of our time, when the key drivers of growth and well-being will come from capital-based knowledge.

World trade: Why ministers must act

Creeping protectionism is alive and well. Last year’s monitoring report on trade for the G20 reminded us that of the nearly 1,500 trade-restrictive measures imposed by G20 countries since 2008, fewer than 400 have been removed. The stock of these barriers continues to grow, despite a pledge by the G20 to reduce protectionism. Not surprisingly, given this context, a recent World Trade Organisation (WTO) report concludes that the risks to the international trading system and to trade flows more generally “are tilted to the downside.”

Global tax and transparency: We have the tools, now we must make them work

If there is a silver lining to the 2008 financial crisis, it is that it was a catalyst for the unprecedented progress we have made in building robust international tax standards for the interconnected global economy of the 21st century.

For an optimistic revolution

The world has seen more than one industrial revolution and another one is already upon us. We should face it as optimists.

computer,digital,machine learning,pedro domingos
A mystery in the machine

Algorithms lie at the heart of machine learning, which, in turn lies at the heart of much of modern life–from online shopping to intelligence gathering. But most of us know little about these powerful tools and how they work. Is this wise?

All on board to increase productivity for a more inclusive world

For Chile, it is a great honour and opportunity to chair the 2016 OECD Ministerial Council Meeting. It is an opportunity to cele­brate Chile’s first five years as a member of the OECD and is yet another demonstration of the increasing relevance of emerg­ing and developing economies, which today account for more than half of world GDP. It is also a way to influence the OECD agenda from the perspective of a group of prosperous, but still unequal, countries.