Estonia: Policy action is needed for stronger and more inclusive growth

The world economy has picked up momentum, as expanding investment, employment and trade support synchronised growth across most countries, according to the OECD’s latest Interim Economic Outlook.

Latvia’s economy is growing strongly. Driven by the recovery of exports and investment as well as strong private consumption, real GDP growth is expected to strengthen from 2% in 2016 to around 4% this year and next.

Estonian growth is picking up again strongly in 2017 and the level of activity has finally surpassed its pre-crisis level, almost 10 years after the outset of the financial crisis. However, poverty remains among the highest in the OECD.

Financial inclusion and women entrepreneurship concern policymakers because of their impact on job creation, economic growth and women empowerment.

Never in the past 30 years has productivity growth been lower than since the 2008 global financial crisis, and never has income inequality been higher than it is today in Japan, and in the OECD area

OECD CLIs point to stable growth momentum in the OECD area

Luxembourg’s workforce is highly skilled, reflecting the concentration in the country of sophisticated firms in the financial sector and other top-end international services.

The U.K. economy has weakened in the aftermath of the decision to leave the European Union. Maintaining close ties with the EU and implementing policies to boost productivity will be crucial for maintaining future living standards, according to a new report from the OECD.

Growth has become more inclusive in recent years in Colombia. Strong growth and targeted social policies have reduced absolute poverty.

OECD CLIs continue to point to stable growth momentum

Digitalisation is one of the megatrends affecting societies and labour markets, alongside demographic change and globalisation.

OECD sees global economy strengthening, but says further policy action needed to catalyse the private sector for stronger and more inclusive growth

Stable growth momentum going forward in the OECD area

A highly educated and skilled workforce has been an important driver of productivity performance and prosperity in Belgium.

Composite leading indicators continue to point to stable growth momentum in the OECD area

Stable growth momentum in the OECD area

Brazil is emerging from its long recession and is headed for solid growth in 2018 and 2019 as recent structural reforms start to bear fruit. Sustaining this recovery, unleashing Brazil’s full economic potential and spreading the benefits fairly will require additional efforts to rein in public spending, increase trade and investment, and further focus social spending on those most in need, according to a new OECD report.

The Irish economy is recovering robustly. Business investment by local firms has picked up, household consumption is reviving while the boost to jobs and a rapidly declining unemployment rate have led to strong wage growth in a number of sectors, says a new OECD report.

The Israeli economy continues to register remarkable performance, with strong growth, low and falling unemployment and sound public finances leading to the 15th consecutive year of economic expansion. Further reforms will be needed to drive down inequality and raise living standards for all Israelis, according to a new report from the OECD.

Over the past two decades, strong growth combined with remarkable social progress has made Brazil one of the world’s leading economies.

Today’s excellent outlook offers Israel a unique opportunity to prepare for the challenges of the future which require stronger social cohesion. Israeli society is indeed marked by large inequalities.

Inequality and relative poverty in Israel remain high, particularly among Arab-Israelis and Haredim (Ultra-Orthodox).x

The Polish economy is in a strong position. Economic growth reached 4.6% on average in 2017 and the OECD expects it to continue at around 4% over 2018/19.

This paper compares Finland’s benefit system with two benefit reform scenarios: a uniform benefit for all ("basic income") and a universal tapering rule ("universal credit").

OECD CLIs point to stable growth momentum in the OECD area

Costa Rica has made impressive economic and social progress in recent years, with robust economic growth facilitating near-universal access to education, health care and pensions.

From a feudal trading hub connecting South with East Asia in the 18th and 19th centuries, Thailand has developed into a rapidly modernising and more urban economy. The second half of the 20th century saw the rapid expansion in manufacturing and services, which underpinned its transformation into an upper-middle-income country.

OECD CLIs continue to point to stable growth momentum in the OECD area

Greece is finally recovering from a deep depression. In 2017 GDP expanded by 1.3%, according to initial estimates, and is projected to accelerate to 2% in 2018 and 2.3% in 2019.

“Urgent and concerted effort” is needed from governments to drive more inclusive, sustainable economic growth that benefits everyone in society, according to a new OECD report.

Thailand’s path from a low-income to an upper-middle-income country over recent decades is widely hailed as a development success story.

Thailand’s "sufficiency economy philosophy" encourages the prioritisation of long-term sustainability over short-term benefits.

The German economy is undergoing a robust expansion, with record-low unemployment and real wage gains underpinning domestic demand while strong exports are driving business investment. The strong fiscal position will offer opportunities for funding structural reforms and public investment to meet future challenges, according to a new report from the OECD.

Global trade imbalances narrowed in the aftermath of the global financial crisis. They have remained at a lower level but are still of concern to policy makers because of the risks they pose to individual economies, as well as globally.

Stable growth momentum in the OECD area

Short-term prospects for the Korean economy are good, with an uptick in world trade and fiscal policy driving growth, but productivity remains relatively low and the country faces the most rapid population ageing in the OECD area, according to a new report from the OECD.

Tunisia’s trade, Tunisia's openness and its integration into global value chains has improved significantly since the mid-1990s, reflecting the country's comparative advantages.

Economic performance in The Netherlands is vibrant and growth is expected to remain robust, underpinned by sound public finances, healthy job creation and high levels of confidence. The current economic expansion should be used to speed up implementation of reforms to ensure future stability and support more inclusive labour markets, according to a new report from the OECD.

Consecutive years of primary deficits have led to mounting public debt of almost 50% of GDP, one of the fastest increases in Latin America over the last decade.

Owing to past structural reforms, Costa Rica has enjoyed robust GDP growth and productivity levels are gradually converging towards the OECD average.

Stable growth momentum in the OECD area

The average standard of living of the Tunisians has been steadily increasing for several decades, while poverty and inequality have been greatly reduced by the implementation of many social programs.

The Czech economy is thriving, with robust employment, expanding exports and falling government debt. Efforts should now focus on boosting workforce skills and innovation to improve labour supply and productivity, further reduce poverty and inequality, and green the economy, according to two new OECD reports.

Canada is one of the OECD economies delivering the best outcomes for its citizens, especially in regards to self-reported well-being, personal security and health status. Canada is also undertaking several programmes to foster inclusive growth – with respect to childcare benefits, gender equality and social housing.

Governments today need to balance the policy goals of boosting economic growth and improving equity when making budget decisions. How can public spending choices promote inclusive growth? What can be learned from previous spending decisions in times of crisis?

Tentative signs of easing growth momentum in the OECD area

Easing growth momentum in the OECD area

Health care expenditure per person, after accounting for changes in overall price levels, began to slow in many OECD countries in the early-to-mid 2000s, well before the economic and fiscal crisis.

OECD CLIS continue to point to easing growth momentum in the OECD area