Economics Department

Economic Survey of the United States 2010

 

OECD Economic Surveys: United States 2010 | OECD Free preview | Powered by Keepeek Digital Asset Management

Obtain this publication | Additional information  | Other issues

The United States is slowly recovering from a severe recession and, with economic growth projected to remain low for some time, unemployment is likely to stay elevated for a relatively long period. Monetary policy will need to continue to support economic activity, particularly as fiscal stimulus measures unwind. Continuation of targeted support for the labour market may also be necessary until private sector employment picks up more strongly.

The financial crisis revealed weaknesses in financial market regulation and supervision. The Dodd-Frank financial reform legislation aims to address these weaknesses, although much work remains to be done at the regulatory level on implementing the legislation, and on coordinating reform internationally. Decisions still need to be taken on the future of the GSEs (notably Fannie Mae and Freddie Mac), which have exposed the federal government to large losses on housing loans and face a difficult future.

The federal government has a large budget deficit and much higher debt than before the recession. Fiscal consolidation measures need to be implemented to substantially reduce the deficit and eventually reverse the rise in public debt. The Administration’s goal of reducing the federal budget deficit to 3% of GDP by 2015 is appropriate and laudable, although the speed of consolidation will need to depend on economic developments.

The fiscal deficit and government debt increased sharply during 2006-09

in per cent of GDP

 

              Source: OECD (May 2010), OECD Economic Outlook 87 Database.

 

download underlying data in Excel

The main threat to fiscal sustainability is long-term growth in public health spending. The recent health-care reform seeks to restrain this expenditure growth. The reform will be most effective in achieving budget savings if future Administrations and Congresses do not override the provisions in the law.

The United States and other countries need to reduce greenhouse gas (GHG) emissions to reduce the risk of serious damage from climate change. The most cost-effective ways to reduce GHG emissions are to price them and to support emission-reducing innovation, which will reduce future abatement costs. This is the approach favoured by the current Administration but it has not yet been possible to get legislation to price GHG emissions passed by Congress. The alternative regulatory approach will be more costly and unlikely to deliver the required scale of reductions in emissions. 

 

How to obtain this publication

 

The complete edition of the Economic Survey of the United States is available from:

 

Additional information

For further information please contact the US Desk at the OECD Economics Department at eco.survey@oecd.org.

The Secretariat’s report was prepared by David Carey and Alan Detmeister under the supervision of Patrick Lenain. Research assistance was provided by Jérôme Brezillon.

 

www.oecd.org/eco/surveys/us

 

 

 

Countries list

  • Afghanistan
  • Albania
  • Algeria
  • Andorra
  • Angola
  • Anguilla
  • Antigua and Barbuda
  • Argentina
  • Armenia
  • Aruba
  • Australia
  • Austria
  • Azerbaijan
  • Bahamas
  • Bahrain
  • Bangladesh
  • Barbados
  • Belarus
  • Belgium
  • Belize
  • Benin
  • Bermuda
  • Bhutan
  • Bolivia
  • Bosnia and Herzegovina
  • Botswana
  • Brazil
  • Brunei Darussalam
  • Bulgaria
  • Burkina Faso
  • Burundi
  • Cambodia
  • Cameroon
  • Canada
  • Cape Verde
  • Cayman Islands
  • Central African Republic
  • Chad
  • Chile
  • China (People’s Republic of)
  • Chinese Taipei
  • Colombia
  • Comoros
  • Congo
  • Cook Islands
  • Costa Rica
  • Croatia
  • Cuba
  • Cyprus
  • Czech Republic
  • Côte d'Ivoire
  • Democratic People's Republic of Korea
  • Democratic Republic of the Congo
  • Denmark
  • Djibouti
  • Dominica
  • Dominican Republic
  • Ecuador
  • Egypt
  • El Salvador
  • Equatorial Guinea
  • Eritrea
  • Estonia
  • Ethiopia
  • European Union
  • Faeroe Islands
  • Fiji
  • Finland
  • Former Yugoslav Republic of Macedonia (FYROM)
  • France
  • French Guiana
  • Gabon
  • Gambia
  • Georgia
  • Germany
  • Ghana
  • Gibraltar
  • Greece
  • Greenland
  • Grenada
  • Guatemala
  • Guernsey
  • Guinea
  • Guinea-Bissau
  • Guyana
  • Haiti
  • Honduras
  • Hong Kong, China
  • Hungary
  • Iceland
  • India
  • Indonesia
  • Iraq
  • Ireland
  • Islamic Republic of Iran
  • Isle of Man
  • Israel
  • Italy
  • Jamaica
  • Japan
  • Jersey
  • Jordan
  • Kazakhstan
  • Kenya
  • Kiribati
  • Korea
  • Kuwait
  • Kyrgyzstan
  • Lao People's Democratic Republic
  • Latvia
  • Lebanon
  • Lesotho
  • Liberia
  • Libya
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Macao (China)
  • Madagascar
  • Malawi
  • Malaysia
  • Maldives
  • Mali
  • Malta
  • Marshall Islands
  • Mauritania
  • Mauritius
  • Mayotte
  • Mexico
  • Micronesia (Federated States of)
  • Moldova
  • Monaco
  • Mongolia
  • Montenegro
  • Montserrat
  • Morocco
  • Mozambique
  • Myanmar
  • Namibia
  • Nauru
  • Nepal
  • Netherlands
  • Netherlands Antilles
  • New Zealand
  • Nicaragua
  • Niger
  • Nigeria
  • Niue
  • Norway
  • Oman
  • Pakistan
  • Palau
  • Palestinian Administered Areas
  • Panama
  • Papua New Guinea
  • Paraguay
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Puerto Rico
  • Qatar
  • Romania
  • Russian Federation
  • Rwanda
  • Saint Helena
  • Saint Kitts and Nevis
  • Saint Lucia
  • Saint Vincent and the Grenadines
  • Samoa
  • San Marino
  • Sao Tome and Principe
  • Saudi Arabia
  • Senegal
  • Serbia
  • Serbia and Montenegro (pre-June 2006)
  • Seychelles
  • Sierra Leone
  • Singapore
  • Slovak Republic
  • Slovenia
  • Solomon Islands
  • Somalia
  • South Africa
  • South Sudan
  • Spain
  • Sri Lanka
  • Sudan
  • Suriname
  • Swaziland
  • Sweden
  • Switzerland
  • Syrian Arab Republic
  • Tajikistan
  • Tanzania
  • Thailand
  • Timor-Leste
  • Togo
  • Tokelau
  • Tonga
  • Trinidad and Tobago
  • Tunisia
  • Turkey
  • Turkmenistan
  • Turks and Caicos Islands
  • Tuvalu
  • Uganda
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • United States
  • United States Virgin Islands
  • Uruguay
  • Uzbekistan
  • Vanuatu
  • Venezuela
  • Vietnam
  • Virgin Islands (UK)
  • Wallis and Futuna Islands
  • Western Sahara
  • Yemen
  • Zambia
  • Zimbabwe
  • Topics list