2003 OECD Economic Outlook, Volume 2003 Issue 2

image of OECD Economic Outlook, Volume 2003 Issue 2

This issue of the OECD Economic Outlook analyses the major trends that will mark the next two years. It  covers the outlook to the end of 2005 and examines the economic policies required to foster high and sustainable growth in member countries. Developments in selected major non-OECD economies are also evaluated. Three analytical chapters look at fiscal policy and its influence on economic activity, fiscal relations across levels of government, and  crubing the growth in government spending and raising its  cost effectiveness.

English Also available in: German, French


The economy expanded moderately in 2003, with output growth remaining somewhat below its potential rate. Prospects look brighter for 2004 and 2005, when external demand is projected to pick up and household spending and business investment to accelerate. While the immediate risk to inflation from the collective wage negotiations in spring 2004 has abated, the final agreements may end up reducing working hours, thereby restricting potential growth. Further stimulus through fiscal or monetary policy easing would not be warranted. The current structural surplus should be sustained and monetary policy tightened gradually as the expansion gathers steam...

English Also available in: French

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