OECD Economic Outlook, Volume 2005 Issue 2
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OECD Economic Outlook, Volume 2005 Issue 2

Twice a year, the OECD Economic Outlook analyses the major trends and examines the economic policies required to foster high and sustainable growth in member countries. Developments in major non-OECD economies are also evaluated. The present issue covers the outlook to end-2007. Together with a wide range of cross-country statistics, the Outlook provides a unique tool to keep abreast of world economic developments.  In addition to the themes featured regularly, this issue contains an analytical chapter addressing the recent run-up in house prices.
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OECD

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Despite a slowdown in exports, economic growth remains robust and is being increasingly driven by domestic demand. The expansion should continue with household consumption projected to benefit from an improvement in employment. Investment, and in particular construction, should continue to grow rapidly in response to low interest rates.

The government’s plan to improve the labour market situation includes increased public spending for 2006. Inflation remains well below target and the central bank has lowered short-term interest rates to historically low levels. Hence, both fiscal and monetary policy are currently expansionary and will have to become more restrictive over the projection period.

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