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In several OECD countries, ongoing fiscal consolidation might have a negative impact on the static income distribution. However, this conclusion should be treated only as an approximate first step in the analysis.
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The well performing labour market has delivered low unemployment and relatively stable wage developments.
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The Netherlands has strongly benefited from globalisation, which boosted international trade, cross-border investment and economic growth over the latest decades.
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The Netherlands, as other OECD countries, faces the challenge of providing high quality health and long term care services to an ageing population in a cost-efficient manner.
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The global crisis led to a smaller increase in the unemployment rate than in most other OECD countries as employment has been sustained through intensive use of reduced working time schemes.
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Public and private debt levels are very high by historical standards. OECD-wide total financial liabilities now exceed 1 000% of GDP. High debt levels can create vulnerabilities, which amplify and transmit macroeconomic and asset price shocks.
OECD Journal: Economic Studies publishes articles in the area of economic policy analysis, applied economics, and statistical analysis, generally with an international or cross-country dimension.
Composite leading indicators (CLIs), designed to anticipate turning-points in economic activity relative to trend, show signs of stabilising economic outlook in most major economies.
Big changes are needed to strengthen the capital positions of euro area banks. European banks remain at the heart of the euro area crisis. Despite actions to strengthen banks and build a banking union, confidence in the euro area banking system remains weak, and is likely to remain so until underlying concerns over low capitalisation of some banks are addressed.
Annual inflation in the OECD area rose by 1.9% in the year to November 2012, compared with 2.2% in the year to October 2012. This easing in the annual rate of inflation mainly reflected slower growth in energy prices, which increased by 2.9% in November, down from 5.4% in October.