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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English
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GDP growth is expected to continue at its recent pace of 2½ to 2¾ per cent, supported by buoyant domestic demand. Exceptionally strong labour force growth -- driven by high immigration and rising participation -- is outstripping employment growth, pushing the unemployment rate up. The resulting labour market slack should help to ensure that the anticipated fourth quarter spike in headline inflation does not push up inflationary pressures, and that headline inflation moves back to the 2% target in 2007.
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