The potential growth rate of the economy has been low for a long time and the crisis has had a further adverse impact, as discussed in this working paper.
Further fiscal easing in late 2008 and early 2009 contributed to a markedly widening fiscal deficit in 2010. A newly enacted fiscal rule will help bring public finances back to a sustainable path, as discussed in this working paper.
English, , 37kb
Speech by Andrew Dean, Director, OECD Economics Department. Launch of the Economic Survey of Poland 2010
Presenting the Economic Survey of the Czech Republic at a high level seminar in Prague, A. Gurría suggested the creation of a "watchdog" to monitor the fiscal policy process in order to make it easier to avoid overspending in good times and thus to limit deficit bias.
The German job market has weathered the crisis well, said OECD Secretary-General Angel Gurría. Presenting the Economic Survey of Germany in Berlin, he said structural reforms were needed to ensure the sustainability of public finances and of long term growth. Stimulating domestic investment would help reduce the current account surplus, he added.
Eine auf Innovation, Bildung und mehr Wettbewerb im Binnenmarkt gestützte Wirtschaftspolitik kann Deutschland zu einer stärkeren und ausgeglicheneren Wirtschaft führen. Die Arbeitsmarktpolitik sollte nun den Weg für nötige Strukturanpassungen bereiten, die Fiskalpolitik braucht eine spezifische Exit-Strategie und muss sich in den kommenden Jahren auf die Konsolidierung der öffentlichen Haushalte konzentrieren.
English, , 1,456kb
The world’s second-largest economy is helping drive the global recovery. But to sustain high growth and social cohesion, China needs to continue rebalancing its economy by boosting public spending on human capital and social services, and further reforming pensions and health care.
In a speech given in Beijing, Angel Gurría recommended that China boost public spending on social infrastructure, including education, health, pensions and social assistance, in order to reduce inequalities, and suggested a more flexible exchange rate regime to avoid looming inflationary pressures.
China’s economy has outperformed all expectations, both over the long haul and, more recently, during the global Great Recession. But structural reforms are still needed in a number of areas such as increased social spending to improve living standards over the longer run, according to the OECD Secretary-General.
English, , 117kb
This note is taken from Chapter 3 of Economic Policy Reforms: Going for Growth 2010.