Monetary policy tightening after QE has led to central bank losses, largely because of higher interest payments on reserves (deposits held by commercial banks at the central bank). As a response, some central banks have tiered reserves, ceasing to remunerate part of them.

by Masatoshi Ando and Álvaro Pina, OECD Economics Department

The UK is pursuing one of its most ambitious devolution programmes in decades. Yet the success of devolution will depend not only on which responsibilities and decision-making powers are transferred to local governments, but also on whether local institutions have the capacity to use them effectively.

Daniela Glocker, OECD Economics Department

Despite recent progress, the perceived effectiveness of the public administration remains low. To reduce the administrative burden and raise public spending efficiency it is key to further simplify and digitalise administrative procedures and improve data sharing and policy impact evaluation.

by Enes Sunel, Robert Grundke

Public debt is approaching 120% of GDP, above its 2021 peak and a sharp rise since the end of 2023. To preserve fiscal room for manoeuvre, France must restore fiscal sustainability through tighter control of public spending, complemented in the short term by additional revenue measures.

Also available in French

by Lilas Demmou, OECD Economics Department

La dette publique approche 120 % du PIB, au-dessus de son pic de 2021 et en forte hausse depuis fin 2023. Pour préserver ses marges de manœuvre, la France doit rétablir sa soutenabilité budgétaire par une meilleure maîtrise des dépenses, complétée à court terme par davantage de recettes.

Aussi disponible en anglais.

par Lilas Demmou, Département des affaires économiques de l’OCDE

Demographic headwinds are set to weaken economic growth in OECD countries over the coming decades. At the same time, artificial intelligence (AI) provides opportunities for productivity gains, potentially alleviating labour shortages and boosting economic growth.

By Christophe André and Matthias Schief, OECD Economics Department

As a small, open economy, Switzerland has been highly exposed to recent global developments including swings in external demand, major changes in international trade policies and geopolitical uncertainty. The economy has weathered these shocks well: Inflation and unemployment are low and public finances are sound. But growth has been below trend since 2024, falling short of the annual average growth rate of 1.8% of the previous decade. Bolstering growth and resilience will hinge on building stronger ties with key trading partners, but also on forging new trade partnerships. This will lay the grounds for diffusing productivity growth beyond export-oriented sectors and firms.

by Priscilla Fialho and Adolfo Rodriguez-Vargas, OECD Economics Department

New OECD analysis combines granular local climate damages with a global spatial model to estimate how heat, floods, shifting crop yields and sea-level rise affect future aggregate economic activity, taking into account key trade, migration and production networks.

By Diogo Baptista, Hélia Costa and Filiz Unsal, OECD Economics Department

Energy and food shocks have impacted consumer spending in recent years. A new dataset of aggregated and anonymised monthly payment card spending for 12 European countries shows how these shocks led to weak growth of “everyday spending” by consumers with shifts across spending categories and important regional differences.

By Juergen Amann (OECD Centre for Entrepreneurship, SMEs, Regions and Cities), Sebastian Barnes and David Haugh (OECD Economics Department) and Luis Monteiro and Sidharth Goel (Mastercard Economics Institute)

Population ageing and climate change will strain Hungary’s public finances. The 2026 Economic Survey of Hungary sets out recommendations to rebuild fiscal space and lift growth. The budget and medium-term fiscal plan that the new government is preparing will provide key opportunities to start addressing these challenges.

by Pierre-Alain Pionnier and Michaël Sicsic, OECD Economics Department