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A moderate recovery is underway in the major advanced economies, according to the OECD’s latest Interim Economic Assessment. Growth is proceeding at encouraging rates in North America, Japan and the UK. The euro area as a whole is out of recession, although output remains weak in a number of countries.
Under the Universal Credit reform, the main means-tested benefits except the Council Tax Benefit will be pooled into one single benefit with one single taper rate. The reform will give people better incentives to work, reduce complexity and contribute to reducing poverty.
Employment has risen by more and unemployment has risen less than expected, given the path of output. Nevertheless, long-term and youth unemployment and involuntary part-time work are high. A polarised labour market risks worsening income inequality, which is high by OECD standards, despite a recent and likely temporary decline.
Fostering sustainable and inclusive growth requires restoring public finances, along with measures to enhance workforce skills and further structural reforms of welfare, land-use planning, innovation and environmental policies.
Restoring fiscal sustainability remains a priority. But at the same time the seeds of future growth must be carefully sewn, said Angel Gurría at the launch of the 2013 OECD Economic Survey of the United Kingdom.
The UK economy is gradually emerging from the recession and rebalancing away from overreliance on debt–finance and government spending towards more investment and exports. A wide ranging programme of fiscal consolidation and structural reforms aims at ensuring a sustainable and balanced recovery
Country Notes from OECD Economic Policy Reforms: Going for growth 2011 presenting OECD recommendations for structural reform priorities for individual countries.
Despite significant increases in spending on child care and education during the last decade, PISA scores suggest that educational performance remains static, uneven and strongly related to parents’ income and background.
The United Kingdom is likely to reduce emissions by more than its near-term domestic targets and its target under the Kyoto Protocol, outperforming many OECD countries in the latter respect.
A well-functioning housing market is essential for economic prosperity and well-being.