If potential output estimates are too cyclical, then OECD estimates have an edge

October 16, 2018

by Yvan Guillemette and Thomas Chalaux, OECD Economics Department To assess the cyclical position of an economy, macroeconomists use a concept called potential output, which measures the economy’s production rate that is consistent with stable inflation at the target. When actual output is below potential, the ‘output gap’ is negative, the economy is depressed and, … More If potential output estimates are too cyclical, then OECD estimates have an edge

How best to keep up rapid tourism growth in Indonesia

October 10, 2018

by Patrice Ollivaud, Economist, Indonesia Desk, OECD Economics Department Bali, where the 2018 OECD Economic Survey of Indonesia is being released, is emblematic of Indonesia’s success in creating a popular tourism brand. The number of foreign tourists arriving in Bali soared from 2.5 million in 2010 to 5.7 million in 2017. In 2014, the authorities … More How best to keep up rapid tourism growth in Indonesia

Making the most of Riga metropolitan area can boost wellbeing and economic growth in Latvia

October 5, 2018

By Daniela Glocker and Andrés Fuentes Hutfilter, OECD Economics Department Located at the centre of the Baltic States, Latvia’s capital city Riga and its surrounding municipalities are a strategically important logistic centre with access to markets in Europe and Russia. It is the largest city in the Baltic States and the third largest in the … More Making the most of Riga metropolitan area can boost wellbeing and economic growth in Latvia

High uncertainty is weighing on global growth

September 20, 2018

By Laurence Boone, OECD Chief Economist Less than 6 months ago, the global economy enjoyed healthy synchronised growth. Now, the landscape has changed. Global growth is hitting a plateau, uncertainties over the path forward abound, and risks from trade restrictions and tighter financial conditions have already started to materialise in some countries. Global growth is … More High uncertainty is weighing on global growth

Speeding up economic catch-up in the BRIICS with better governance and more education

September 17, 2018

by Yvan Guillemette, Macroeconomic Analysis Division, Economics Department Economic research has established that a large part of income disparities between poor and rich countries can be attributed to differences in governance and in the quantity and quality of human capital. In the latest long-run reference scenario published by the OECD, GDP per capita growth is … More Speeding up economic catch-up in the BRIICS with better governance and more education

Statistical Insights: An x-ray view of inflation

September 11, 2018

By Pierre-Alain Pionnier, Francette Koechlin, Anne-Sophie Fraisse and Elena van Eck. Inflation may be present in some parts of an economy but not others. Contributions to annual inflation show how much different product groups contribute to overall inflation in a given year. The measure is a useful tool to understand where inflation is occurring in … More Statistical Insights: An x-ray view of inflation

Structural Policy Indicators Database for Economic Research: SPIDER on the web

August 22, 2018

by Égert Balázs, Peter Gal and Isabelle Wanner, OECD Economics Department Researchers looking for empirical evidence on the relative impact of policy and non-policy drivers of economic growth know how much time and efforts can go into assembling a large database of policy variables and other determinants covering as many countries and years as possible. … More Structural Policy Indicators Database for Economic Research: SPIDER on the web

The UK productivity puzzle through the magnifying glass: A sectoral perspective

August 17, 2018

Rafał Kierzenkowski, Gabriel Machlica and Gabor Fulop, Economics Department. Labour productivity has flatlined since the global financial crisis, which contrasts with its recovery profiles from past recessions over the last decades (Figure 1).  The productivity shortfall, defined as the gap between actual productivity and the level implied by its pre-crisis trend growth rate, reached nearly 20% … More The UK productivity puzzle through the magnifying glass: A sectoral perspective

Improving the Czech health care system

August 14, 2018

by Falilou Fall, Czech Republic desk, OECD Economics Department Health outcomes in the Czech Republic have improved considerably over the last decade. Life expectancy rose by 2.6 years to 78.7 years between 2005 and 2015 towards the OECD average of 80.6 years. This was achieved with relatively low expenditures on health care of about 7% … More Improving the Czech health care system

Rising financial integration amplifies the global impact of financial market  shocks

August 9, 2018

by Nigel Pain and Véronique Salins, OECD Economics Department Stronger cross-border economic and financial integration implies that macroeconomic shocks in one country are increasingly likely to spill over into other economies. This is particularly true in national financial markets, where developments increasingly reflect common underlying factors, as shown in the special chapter of the latest OECD … More Rising financial integration amplifies the global impact of financial market  shocks