OECD Economic Outlook, Volume 2007 Issue 2
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OECD Economic Outlook, Volume 2007 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. This issue covers the outlook to end-2009. 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 Corporate saving and investment: Recent trends and prospects.
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06 Dec 2007
DOI: 
10.1787/eco_outlook-v2007-2-en
 
Chapter
 

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English
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Author(s):
OECD
Pages:
154–156
DOI: 
10.1787/eco_outlook-v2007-2-28-en

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The first half of 2007 saw an acceleration of economic activity, driven by booming domestic demand. Growing labour shortages have fuelled strong wage increases. The pick-up in unit labour costs and record-high capacity utilisation rates have darkened the inflation outlook. Persistent strength in domestic demand should support growth, but the current account deterioration is projected to continue.
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