Harnessing skills for more inclusive growth

by Jan Strasky, Luxembourg Desk, OECD Economics Department. Strong economic performance, comfortable fiscal situation and well-run institutions make life good for most residents of Luxembourg. Average earnings are the highest in the OECD, while labour market insecurity and income inequality are low. Yet, the development of the digital economy is constantly expanding the domain of … More Harnessing skills for more inclusive growth

Collective bargaining in Iceland: sharing the spoils without spoiling the shares

by Urban Sila, Iceland Desk, OECD Economics Department Icelandic labour market is flexible with high labour market participation, low unemployment, and labour supply dynamically responds to the economic cycle. Iceland is the most highly unionised country in the OECD and wage bargaining is a cornerstone of the economy. Strong unions have contributed to very low … More Collective bargaining in Iceland: sharing the spoils without spoiling the shares

New Zealand has recently enjoyed strong economic growth, but housing and population ageing pose challenges

by David Carey, New Zealand Desk, OECD Economics Department. New Zealand enjoyed strong economic growth during 2016, driven by high net inward migration, solid construction activity, booming tourism and supportive monetary policy, although in per capita terms growth has been more in line with that in other advanced economies. The terms of trade have rebounded … More New Zealand has recently enjoyed strong economic growth, but housing and population ageing pose challenges

Lifting New Zealand’s game on productivity

by Andrew Barker, New Zealand Desk, OECD Economics Department Productivity growth will be the main driver of global economic growth and prosperity over the coming decades. For New Zealand, this represents both a challenge and an opportunity, as NZ productivity is below that of leading OECD countries (Figure 1). This problem is not new, and … More Lifting New Zealand’s game on productivity

The downsides of New Zealand’s inflated house prices

by David Carey and Andrew Barker, New Zealand Desk, OECD Economics Department In real terms, house prices in New Zealand increased more than in any other OECD country between 2010 and 2016 (Figure 1). While house price increases have supported economic growth through wealth-induced consumption growth, they have also created a number of social and … More The downsides of New Zealand’s inflated house prices

Make trade work for all

By Catherine L. Mann, OECD Chief Economist and Head of Economics Department The special chapter of the June 2017 Economic Outlook calls for action to diagnose and respond to structural trends, focussing on globalisation.  International trade has been a powerful engine of global economic growth and convergence in living standards between countries. Despite these benefits, … More Make trade work for all

Global Economic Outlook: Better, but not good enough

By Catherine L. Mann, OECD Chief Economist and Head of Economics Department Global growth is projected to rise modestly from 3% in 2016 to just over 3½ per cent by 2018 in our latest Economic Outlook. The mood in the global economy has brightened during the past year, with confidence indicators and industrial production increasing, and … More Global Economic Outlook: Better, but not good enough

Solving Non-Performing Loans in Europe to speed up the recovery

by Pierre Beynet, Head of Division, Country Studies Branch, OECD Economics Department Almost 10 years after the outset of the financial crisis in summer 2008, European growth remains modest, constantly underperforming the OECD average. Several factors explain this disappointing performance. The pace of fiscal consolidation was rapid in the countries most affected by the crisis … More Solving Non-Performing Loans in Europe to speed up the recovery

Enhancing financial stability amid slowing growth in China

By Margit Molnar and Ben Westmore, China Desk, OECD Economics Department Growth in China has been slowing gradually, but GDP per capita remains on course to almost double between 2010 and 2020. As a result, the Chinese economy will remain the major driver of global growth for the foreseeable future. Patterns across the country vary, … More Enhancing financial stability amid slowing growth in China

Does everybody enjoy Pura Vida? Decomposing income inequality in Costa Rica

By Mabel Gabriel and Alberto Gonzalez Pandiella, OECD Economics Department Despite strong economic growth, Costa Rica’s income inequality has increased in the past decade, in stark contrast with other Latin American countries (OECD, 2016 and González Pandiella and Gabriel, 2017). What explains this? A decomposition of income inequality by income sources reveals, surprisingly, that public … More Does everybody enjoy Pura Vida? Decomposing income inequality in Costa Rica