OECD Economic Outlook, Volume 2006 Issue 2
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OECD Economic Outlook, Volume 2006 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-2008. 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 a special chapter entitled Has the rise in debt made households more vulnerable?, which addresses the following questions:

  • What factors explain the observed rise in household debt in many OECD countries?
  • Have asset price movements offset the impact on households’ financial positions?
  • Are some sectors or groups particularly vulnerable to adverse asset market or income developments?
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OECD

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The economy has slowed over the course of the year, serving to eliminate excess demand pressures. The projected pick-up in the pace of activity is likely to be modest, as the shift towards export-led growth is hampered by the exchange rate appreciation since the middle of the year. Nevertheless, moderate real disposable income growth will allow private consumption to gently accelerate. Employment is projected to stabilise, but the rise in the unemployment rate will be attenuated by some labour market withdrawal.
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