OECD Economic Surveys: United Kingdom

Frequency :
Tous les 18 mois
ISSN :
1999-0502 (en ligne)
ISSN :
1995-3445 (imprimé)
DOI :
10.1787/19990502
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OECD’s periodic surveys of the British economy. Each edition surveys the major challenges faced by the country, evaluates the short-term outlook, and makes specific policy recommendations. Special chapters take a more detailed look at specific challenges. Extensive statistical information is included in charts and graphs.

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OECD Economic Surveys: United Kingdom 2011

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Auteur(s):
OCDE
Date de publication :
16 mars 2011
Pages :
162
ISBN :
9789264093034 (PDF) ; 9789264092860 (imprimé)
DOI :
10.1787/eco_surveys-gbr-2011-en

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The 2011 edition of OECD's periodic survey of the UK economy.  This edition includes chapters covering supporting the recovery and rebalancing the economy, improving the functioning of the housing market, reforming education in England, and climate change policy in the UK.

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  • Cliquez pour accéder:  Basic statistics of the United Kingdom (2009)
  • Cliquez pour accéder:  Executive summary
    The UK economy emerged from the 2008-09 recession with elevated public and private debt and high unemployment. Strong growth and macroeconomic stability in the run-up to the crisis had hidden a build-up of significant imbalances, influenced by overreliance on debt-finance and the financial sector, and booming asset prices. These imbalances need to be addressed to ensure a sustainable and balanced recovery. The government is pursuing a necessary and wide ranging programme of fiscal consolidation and structural reforms aimed at achieving stronger growth and a rebalancing of the economy over time.
  • Cliquez pour accéder:  Assessment and recommendations
    The global financial crisis and the associated recession ended a 15-year period of continuous growth, rising employment and stable inflation. Significant imbalances had developed, however, in terms of public and external deficits, an excessively leveraged financial sector, high house prices and low household savings. The imbalances exacerbated the downturn during the global recession and contributed to a more pronounced fall in GDP, a larger fiscal deficit and higher inflation than in most of the OECD. A wide range of policies were introduced to support the economy and the financial sector, some of which are now being scaled back.
  • Cliquez pour accéder:  Supporting the recovery and rebalancing the economy
    The UK economy is gradually emerging from the recession and has started to rebalance away from overreliance on debt-finance and government spending towards more investment and exports. The government deficit is starting to decline, household and firm balance sheets have strengthened, but the pick-up in exports has been relatively slow despite the depreciation of sterling and the recovery in export markets. Meanwhile, the labour market has proved more resilient than in previous downturns, reflecting more labour hoarding due to falling real wages and shorter working hours. To support the recovery, monetary policy should remain expansionary, as current above target inflation rates essentially reflect temporary factors. If inflation expectations drift too far from the target, however, policy rates would need to rise earlier. The government is pursuing a necessary and wide ranging programme of fiscal consolidation and structural reforms aimed at achieving stronger growth and a rebalancing of the economy over time. Plans for fiscal consolidation, principally focusing on spending cuts, are appropriately ambitious. These plans were needed to ensure fiscal sustainability and have significantly reduced fiscal risks, contributing to lower bond yield spreads and diminished uncertainty. Fiscal plans could, however, be adjusted to better promote efficiency and long-term growth. In due course, the fiscal mandate should be modified into a permanent fiscal framework to guide fiscal policy beyond 2015/16. The UK banking sector was severely affected by the financial crisis and UK authorities have already addressed some weaknesses. Further financial sector reforms, consistent with Basel III and European initiatives to reinforce regulation and supervision, are essential to secure financial stability going forward.
  • Cliquez pour accéder:  Improving the functioning of the housing market
    The UK economy is gradually emerging from the recession and has started to rebalance away from overreliance on debt-finance and government spending towards more investment and exports. The government deficit is starting to decline, household and firm balance sheets have strengthened, but the pick-up in exports has been relatively slow despite the depreciation of sterling and the recovery in export markets. Meanwhile, the labour market has proved more resilient than in previous downturns, reflecting more labour hoarding due to falling real wages and shorter working hours. To support the recovery, monetary policy should remain expansionary, as current above target inflation rates essentially reflect temporary factors. If inflation expectations drift too far from the target, however, policy rates would need to rise earlier. The government is pursuing a necessary and wide ranging programme of fiscal consolidation and structural reforms aimed at achieving stronger growth and a rebalancing of the economy over time. Plans for fiscal consolidation, principally focusing on spending cuts, are appropriately ambitious. These plans were needed to ensure fiscal sustainability and have significantly reduced fiscal risks, contributing to lower bond yield spreads and diminished uncertainty. Fiscal plans could, however, be adjusted to better promote efficiency and long-term growth. In due course, the fiscal mandate should be modified into a permanent fiscal framework to guide fiscal policy beyond 2015/16. The UK banking sector was severely affected by the financial crisis and UK authorities have already addressed some weaknesses. Further financial sector reforms, consistent with Basel III and European initiatives to reinforce regulation and supervision, are essential to secure financial stability going forward.
  • Cliquez pour accéder:  Reforming education in England
    Despite significant increases in spending on child care and education during the last decade, PISA scores suggest that educational performance remains static, uneven and strongly related to parents’ income and background. Better educational performance could improve labour market outcomes, raise growth, lower the consequences of a disadvantaged background and increase social mobility. Given the austere fiscal outlook, improvements have to come from higher efficiency rather than further spending. More focused pre-school spending on disadvantaged children could improve skill formation. Better-targeted funding for disadvantaged children combined with strengthened incentives for schools to attract and support these students would help raising educational outcomes. The government is increasing user choice by expanding the academies programme and introducing Free Schools, but needs to closely follow effects on fair access for disadvantaged children.
  • Cliquez pour accéder:  Climate-change policy in the United Kingdom
    The United Kingdom started to pursue policies to reduce greenhouse gas emissions at a relatively early date and now has a comprehensive set of measures in place. It has set clear targets for emission reductions consistent with international goals of limiting global warming and has pioneered statutory underpinning of targetsetting. On the international stage, it has been an active protagonist of a global deal to limit human-induced climate change. The new government has endorsed the direction of previous policies in this area and is introducing further measures, despite heavy fiscal pressures. The United Kingdom is likely to reduce emissions by more than its near-term domestic targets and its target under the Kyoto Protocol, outperforming many OECD countries in the latter respect. But some of the success has been due to "one-off" factors such as the "dash for gas", reductions in non-CO2 greenhouse gases in the 1990s and the recent recession, rather than explicit climatechange policies. The pace of decarbonisation of the power sector has been slow and the spread of renewable energy technologies limited. Implicit carbon prices vary across sectors, and should be harmonised and thus more efficient. The unevenness partly reflects the way in which policies have proliferated and overlap and a simplified structure would be desirable. A step-change in the pace of emission reductions is required to put the UK on the path towards its ambitious 2050 target. Given the central role of the EU emissions trading scheme, a key element of the UK strategy should be to seek tighter quotas within the EU scheme. Preparations to adapt to climate impacts also need to be stepped up, focusing on the provision of more information, better risk-assessment frameworks and more advanced metrics for monitoring and evaluation of adaptation planning.
  • Cliquez pour accéder:  Glossary
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