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Euro area finance ministers meeting this week need to boost the firepower of the European stability funds to at least one trillion euros in order to restore market confidence, OECD Secretary-General Angel Gurría said today.
Swift action is needed to stabilise the Hungarian economy and put growth on a sound footing for a durable recovery, according to the latest Economic Survey of Hungary. Strengthening the credibility and predictability of domestic policies and undertaking much-needed fiscal consolidation will be key.
The pace of reform has accelerated in those OECD countries where it is needed most, says the latest Going for Growth report. It identifies the specific action needed to help governments steer their economies out of the crisis, stimulate growth and create jobs.
Germany recovered rapidly from the 2008-09 recession, with GDP topping pre-crisis rates during 2011 and unemployment falling significantly. Public finances are sound, but further reforms are needed to transform its growth model to thrive as a knowledge-based economy.
Composite leading indicators (CLIs) point to a positive change in momentum for the OECD as a whole, driven primarily by the United States and Japan, but similar signs are beginning to emerge in a number of other developed economies.
Finland enjoys high well-being, but competitiveness has deteriorated, output has fallen and the population is ageing rapidly. Structural reforms are needed to extend working lives and raise public sector efficiency and potential growth.
Europe's sovereign debt crisis has exposed structural weaknesses in economic governance that now threaten the entire euro region. Efforts to reinforce public finances and preserve the currency union must go further than solutions proposed to date.
Switzerland has made a broadly balanced recovery from the economic crisis, but slower activity in Europe and pressures on the Swiss franc weigh on the near-term outlook, according to the latest Economic Survey of Switzerland.
Given current levels of uncertainty, it is quite a challenge to discuss the outlook for the global economy in the months to come. But I will take the risk, and share the OECD’s assessment of the forces shaping the near-term outlook, the risks surrounding our projections and the major policy challenges facing many OECD countries.
OECD Secretary-General Angel Gurría has welcomed the measures adopted by the Italian government to address fiscal sustainability while boosting growth and equity.