2005 OECD Economic Outlook, Volume 2005 Issue 1

image of OECD Economic Outlook, Volume 2005 Issue 1

Presents OECD's assessment of the economic outlook to the end of 2006 for the OECD area and China, Brazil, and the Russian Federation.  It finds that Japan and the US have rebounded but that Europe is lacking in sustained momentum, and it carefully examines why. This issue of the OECD Economic Outlook also includes several medium-term scenarios projecting to 2010. The special chapter covers measuring and assessing underlying inflation.

English Also available in: German, French


Growth quickened after mid-2004, underpinned principally by robust domestic demand, and prospects are expected to remain bright despite a projected slowdown of foreign demand. After a sharp rise, headline inflation turned down again in early 2005 and core inflation eased.

Faced with rising inflation expectations, the successive moves over 2003-05 to tighten the monetary policy stance have been appropriate. On the fiscal front, the 2004 budget target was easily met, thanks to higher-than-projected oil revenues. The supportive revenue environment is expected to allow further consolidation of public finances. But a revenue-enhancing tax reform remains essential to reduce the vulnerability of public finances to oil price changes.

English Also available in: French

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