you're reading...
Economic and Social Policies, PUBLICATIONS

The OECD Interim Economic Outlook: Stronger collective fiscal policy needed

Written by Cemal Karakas,

Business chart

© adempercem / Fotolia

According to the 2016 Interim Economic Outlook of the Organisation for Economic Co‑operation and Development (OECD), global GDP growth this year is projected to be the slowest in five years. The OECD has lowered its real GDP growth forecast for the euro area for 2016 from 1.8% to 1.4%, and for 2017 from 1.9% to 1.7%. While low inflation and prices are discouraging commodity exporters, low investment and demand have led to stagnation, stifling wage and employment developments.

The OECD recommends a stronger collective policy response in order to strengthen demand. While the impetus for structural reform has slowed in many countries, contractionary fiscal policy has gained new momentum. Monetary policy alone is considered to be insufficient. A sustainable mix of structural, monetary and fiscal policy measures must be deployed in order to boost GDP growth and counter deflationary tendencies. The policy mix, however, varies from country to country, as countries are being affected in different ways by the international economic crisis.

Read the complete briefing on ‘The OECD Interim Economic Outlook‘ in PDF.



No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download the EPRS App

EPRS App on Google Play
EPRS App on App Store
What Europe Does For You
EU Legislation in Progress
Topical Digests
EPRS Podcasts

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 3,511 other followers

RSS Link to Members’ Research Service

Disclaimer and Copyright statement

The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.

For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.

Copyright © European Union, 2014-2019. All rights reserved.

%d bloggers like this: