OECD Observer
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  • Latest economic data
    GDP +0.8% Q3/Q2 2009
    Leading indicators +1.0 Nov 09, +8.2 year on year
    Inflation +1.3% Nov 09, annual
    Trade (G7) -17.5% exports Q3 09, imports -14.6%, y/y
    Unemployment 8.8% Nov 2009, up 2.1 percentage pts y/y

    Data for OECD area . Latest update:  29 January 2010

    For details on these and other numbers, visit www.oecd.org/statistics

  • Energy deficits

    Oil-producing MENA countries can expect steep drops in their current account balances in 2009 due to falling crude oil prices and lower global demand during the economic crisis. Non-oil producers' balances should remain steadier, albeit negative, according to recent statistics.

    (231 words)
  • Where's the beef

    Despite the global economic slowdown, consumption of meat is projected to grow over the next decade, keeping pace with increases in population and purchasing power in most parts of the world. By 2018, human beings will be eating more than 320 million tonnes of meat a year, up some 20% compared with 2006-08. In developing countries, per capita meat consumption will jump more than 16%, outpacing population growth and rising from 24 kg per person per year today to a projected 27 kg in 2018.

    (220 words)
  • OECD Monthly Statistics of International Trade (MSIT) database

    Trade declines

    By sector-
    International trade has declined steeply during the crisis, though how has the fall been reflected in different sectors and countries? Take the US, Germany and Japan, the three largest OECD traders-OECD countries account for roughly 60% of world trade. As shown in the top graph for total trade (which is the sum of imports and exports, rather than the difference, which is the trade balance as shown on page 5), machinery and transport equipment have broadly speaking been the main culprits, falling by over 11% in the US, 14% in Germany and 15% in Japan, comparing the second quarter 2009 with a year earlier. Lower energy prices have also contributed to fewer imports. Trade in fuel and lubricants fell by nearly 10% in the US and Japan, though exports by just over 3% in Germany. A closer look shows that fuel and lubricant imports in the US and Japan plummeted, by 13.6% and 18.1% respectively. Trade in manufactures and chemicals were not affected quite as badly, though it fell particularly steeply in Germany, by 6% and 3.6% respectively, year-on-year.

    (396 words)
  • Poor pensioners

    As actress Bette Davis once said, "getting old is not for sissies". Just when you expect to be reaping the rewards of a life of hard work, there is a surprisingly good chance that you will, instead, be struggling just to get by. In the mid-2000s, an average of 13.3% of people over 65 were living in poverty in OECD countries. An astonishing 45% of Koreans of that age were income poor, as were more than one out of every five older persons in Australia, Greece, Ireland, Japan, Mexico and the US. In only eight countries was the income poverty rate 5% or less among their oldest citizens.

    (179 words)
  • Returns on learning Private net present value for an individual with tertiary education as part of initial education, US$ ‘000s Education at a Glance 2009: OECD Indicators

    When learning pays

    Jobs crisis or no, it's best to invest in education. As this year's edition of Education at a Glance shows, men and women who have university-level degrees earn far more over the course of a lifetime than those who don't. In fact, men with higher education in Italy and the US can earn over US$300,000 more than their counterparts who do not have a university degree. Rewards tend to be lower for women, with Korea and Spain the exceptions.

    (142 words)
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    Public deficit

    Has the crisis driven up public interest in policies?

    (214 words)
  • Nothing ventured

    Even as the world's main economies are looking to "green growth" as the way out of the economic crisis, investment in the kinds of ideas and technologies that could stimulate that growth has fallen sharply.

    (227 words)
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    Taking it easy

    Where there's money, there's also time for relaxing.

    (239 words)
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    Early warnings?

    Productivity had been plummeting in OECD economies for a few years before the advent of the financial crisis.

    (209 words)
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    Arrested development

    There are just six years to go to the deadline set by the international community for achieving the Millennium Development Goals (MDGs). The trouble is, reports now indicate that no sub-Saharan African country will attain all the goals by 2015.

    (262 words)
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    Bill of health

    Everyone puts off visits to the doctor and dentist at one point or another; but how often do people forego a check-up, treatment, or decide not to fill a prescription just because it costs too much?

    (193 words)
  • Nuclear R & D loses steam

    While climate change is forcing governments to think again about nuclear power, most countries have curtailed funding of nuclear research and development.

    (255 words)
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    Give a little

    In times of crisis, people don't look just to their governments to help them out, they look to each other. Giving money and time to non-profit groups working in health, education, social services and the arts helps others while making those who contribute feel good about themselves.

    (263 words)
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    Public sector jobs

    With unemployment rising, could the public sector become a source of job growth in the OECD area?

    (247 words)
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    Who pays what ?

    Ever wonder just how generous your employer is when it comes to contributing to your pension scheme? The answer might depend on where you live.

    (293 words)
  • Debt burdens

    The financial crisis and economic downturn are likely to put upward pressure on government debt. The trouble is, according to OECD in Figures 2008, public debt (general government debt, which includes central and local government) had already risen quite sharply in the OECD as a whole since 1987, from 59% of GDP to 75% in 2007. Two decades ago, Belgium had the highest public debt, but today that position is filled by Japan, whose debt rose from below 60% to 170% of GDP. Italy’s debt has also shot above 100% of GDP in the past 20 years.

    (247 words)
  • How deep?

    The crisis sweeping the world’s economy is reflected in the output results for the third quarter of 2008, when GDP of the OECD area fell by 0.1% compared with the previous quarter. This was the first decline since 2001.

    (204 words)
  • Importing low skills

    While OECD countries compete to attract high-skilled immigrants, the 2008 International Migration Outlook finds that employers increasingly rely on immigrants for low-skilled work. Just a fifth on average of the low-educated workforce in 21 OECD countries in the report is foreign-born, whereas the EU25 average is 14.1%.

    (223 words)
  • Healthy economy?

    The pharmaceutical industry’s important role in the OECD economy is reflected in expenditure, with a total of US$569 billion on pharmaceuticals (excluding pharmaceuticals for in-patients) in 2005.

    (244 words)
  • Higher prices

    Consumer price inflation has been rising in many countries for the first time in several years. Indeed, the consumer price index for energy tracked alongside prices for non-energy and non-food for most of the last two decades, but jumped to a far steeper trend from 2003, the latest OECD in Figures 2008 reports.

    (226 words)
  • Tax burden nears peak

    Denmark is confirmed as the OECD’s highest-tax country, followed by Sweden, while Mexico and Turkey remain the lowest-taxing countries, the latest 2008 edition of Revenue Statistics says. Denmark’s tax-to-GDP ratio stood at 48.9% in 2007, while Turkey’s was at 23.7% of GDP.

    (213 words)
  • Save our savings

    Deposit insurance limits

    Amid the worst current financial crisis since the 1930s, some government leaders have pledged to protect savers’ deposits and others are considering this option. Already most OECD countries have explicit deposit insurance schemes for savings up to certain limits. In a number of countries these have now been raised temporarily. Until the latest statements suggesting unlimited guarantees in some countries, legal coverage was highest in Norway, France, Italy and Mexico (see graph). Click here for full story.


    (87 words)
  • E-commerce's mixed results

    In most European countries, the volume of Internet and other e-commerce sales transactions has risen since 2004, with Denmark, the UK, Ireland and France reporting the highest shares. The increase in the share of e-commerce sales between 2003 and 2006 has been sharpest in Denmark, with 10 percentage points, Norway (8), Portugal (7) and Spain (5). Ireland saw a slight drop in its volume, albeit from a high base.

    (248 words)
  • Growing by the gallon

    Every country strives for energy efficiency, but assessing it is not an easy task. Since 1971, the OECD’s energy supply per unit of GDP has fallen sharply due to changes in manufacturing output, consumer behaviour, shifts to electricity, technological progress, efficiency drives and so on.

    (252 words)
  • Western rail

    Investment in Europe’s roads, railways and inland waterways has taken an upswing in recent years, particularly in eastern countries, says the International Transport Forum.

    (234 words)
  • Irish house price nerves

    Ireland has been the OECD’s fastest growing economy for several years, driven by strong consumer demand, fixed investment and a buoyant global demand in areas like IT, pharmaceuticals and financial services.

    (244 words)
  • Getting the measure of diabetes

    Diabetes has become one of the most serious public health challenges of the 21st century. Over 150 million adults are affected worldwide, with the number expected to double in the next 25 years.

    In 2002, the cost of diabetes in the United States was an estimated $92 billion in medical expenditures and $40 billion in lost productivity, according to the American Diabetes Federation.

    (308 words)
  • Farmland: Not so diverse

    Anyone looking for a measure of biodiversity loss should consider the expansion of farmland. More land was converted to agriculture in the 30 years following 1950 than during the 150-year period between 1700 and 1850.

    (262 words)
  • Bright exports

    Some 72% of people born in Jamaica and holding a tertiary education degree live in OECD countries, a new report finds. Though Jamaica is the country with by far the highest emigration rate among people with such third-level qualifications (earned at home or abroad), the new study shows several OECD countries also feature highly.

    (249 words)
  • Environmental aid

    Although the environment is high on the international policy agenda, development aid for the environment has declined in relation to total aid since 1996. This trend comes despite an increase in overall aid funding: from 2004 to 2005, total official development assistance (ODA) rose 32% to a record high of US$107.1 billion, though eased back somewhat in 2006 (see development setback news brief).

    (279 words)
  • US energy

    The United States is dependent on fossil fuels for almost all its energy supply. Coal dominates electricity generation, accounting for half of its power production, with nuclear and natural gas around one-fifth each.

    (277 words)
  • New directions

    Both the size and the relative incidence or frequency of the foreign-born population have increased in all OECD countries since 1995. So while there have been large increases in traditional migration countries such as the US and New Zealand, there have also been sharp rises in Denmark, Korea, Ireland, Italy, Norway and Spain, where inward migration has recently taken off.

    (237 words)
  • Korea's young workers

    The Korean economic wave continues forward, with strong growth and low unemployment expected in 2008-2009. But the upsurge appears to have left some younger people behind. True, at 10%, Korean youth unemployment is below the OECD average of nearer 15%, and though the country has a lower employment rate, this reflects a much lower school drop-out rate and high participation in education.

    (226 words)
  • Latin America calling

    Latin Americans’ access to telecommunications services has expanded fast since the early 1990s, with a telephone density now above the world average. Chile and Argentina lead the continent, with 90 and 82 telephone lines per 100 inhabitants respectively. Fewer, albeit wide, disparities still exist.

    (210 words)
  • Trading with China and India

    There has been a rapid rise of goods and services exports from large emerging economies in recent years, in particular, Chinese manufactured goods and Indian business services. In 1980, goods trade between the OECD and India and China was relatively small, representing in total only 2% of total OECD trade.

    (233 words)
  • OECD in Figures 2007

    Download your file below. Please note that this edition of OECD in Figures 2007 updates the edition entitled OECD in Figures 2006-2007.
    Easy to use OECD in Figures e-books can also be found at Source OECD and previous editions in pdf at www.oecd.org/infigures.

    (45 words)
  • Humanitarian aid rises

    One role of development aid is humanitarian assistance to help victims of natural disasters, famine and conflict. Since 2000 the trend has been rising sharply, reaching some 6-7% of total bilateral official development assistance in 2005, or some US$7.1 billion (constant 2005 prices).

    (214 words)
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    Mexican infrastructure

    Mexico has made great economic strides over the past decade, and output growth is expected to reach 3.5-4% in 2008. However, the latest Economic Survey of Mexico says that only a renewed reform effort will raise the economy to a higher plane of growth and help close the gap with wealthier OECD countries.

    (245 words)
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    Lower pensions

    Making pension systems financially sustainable in the face of population ageing has obliged governments to carry out reforms. This has meant finding savings, but also lower retirement incomes. According to the latest edition of Pensions at a Glance, most of the OECD countries surveyed saw a decline in benefits as a result of pension reforms, affecting retirement incomes of average earners, but also the poorest pensioners (see graph).

    (232 words)
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    Ageing medics

    Ageing will boost demand for healthcare, but at a time when healthcare professionals are themselves ageing, how can that demand be met? Suppose a scenario with no growth in the demand for doctors in a country, and no migration either.

    (247 words)
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    Dot.com evolution

    China is becoming one of the world’s fastest growing players on the global information and communications technology market.

    (256 words)
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    Switching on

    We live in an age of gadgets and gigabytes. Our mobile phones have morphed into multi-tasking life-support systems, with inbuilt cameras, calendars and messaging services. Computers are ever faster child’s play, and Internet allows us 24-hour access to the rest of the world. However, all of this comes at a price: our increasing reliance upon electricity.

    (268 words)
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    Cool China

    When a blackout hit part of New York recently, some people blamed the air conditioning, as demand soared during a heat wave. Air conditioning has caught on around the world, which means year-round demand for energy beyond cold winters, and so bigger bills and environmental costs.

    (286 words)
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    Spreading crops

    There were 102 million hectares of commercially grown transgenic (or genetically-modified) crops worldwide in 2006. In 1996 that total stood at 1.7 million hectares. These figures come from the international agribiotech concern, ISAAA, which notes that soybean, maize, cotton and canola are still the main transgenic crops, and herbicide tolerance and insect resistance the dominant traits.

    (242 words)
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    Statlink: http://dx.doi.org/10.1787/015332400840

    Healthy immigration

    The supply of medical staff also reflects global movements of labour. Indeed, there were some 1.3 million foreign born health professionals–nurses, doctors, pharmacists, dentists, etc.–living in OECD countries in 2000, according to a special report in the latest International Migration Outlook.

    (259 words)
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    Grey new world

    The OECD has only been around for half a century, but is nevertheless an ageing club. Just before it was set up in 1960, only one in twelve people was aged 65 and over on average in OECD countries.

    (316 words)
  • ©OECD

    Property values

    Property prices have been soaring for several years now in many OECD cities. A few markets, in UK and US cities for instance, have seen some cooling.

    (320 words)
  • ©OECD

    City people

    Dublin’s high property prices belie the city’s relatively small population–just over 1.1 million within the county. This pales compared with the 22 million inhabitants recorded for the metropolitan region of New York, which has the largest population of all OECD urban regions, and accounts for about 8% of the total population of the US.

    (267 words)
  • OECD in Figures

    OECD in Figures is an original, simple to use, pocket data book. It is a primary statistical source. As with all OECD data, it is compiled and checked by our experts, so that decision-makers in government, research and business know they can rely on it. The 2006-2007 edition of OECD in Figures contains key data on OECD countries, ranging from economic growth and employment to energy, trade and migration.

    (69 words)
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    Trading up

    Globalisation may have accelerated, but how big is international trade in a country’s income? For some major countries, the answer is not much bigger than before.

    (253 words)
  • Limits of GDP

    How happy are you? Economists generally rely on monetary measures like GDP per capita to answer such questions. After all, satisfying wants is a function of what we consume, and so using per capita income as a proxy for well-being makes sense.

    (286 words)
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    Female power

    Women political leaders remain a rarity in OECD countries. True, there is Chancellor Angela Merkel of Germany and Prime Minister Helen Clark of New Zealand, and high-profile women candidates are battling it out in major election campaigns in France and the US. But did you know that women are still vastly outnumbered by men in all the world’s parliaments?

    (225 words)
  • City pretty

    Dynamic countries tend to have a fast-growing and competitive city at their hub, even if cities accumulate social and economic disorders as well. San Francisco is the wealthiest in a new OECD ranking of 78 metropolitan regions, with income of $62,350 per head, adjusted for purchasing power parity.

    (242 words)
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    Source: OECD, Improving Recycling Markets

    Not so tyred

    A decade ago, used tyres ended up mostly in stockpiles, as an eyesore for landfill. Some 62% of old tyres went that way in 1994. Today, more are recycled for use in adhesives, insulation, brake linings, and conveyor belts, for instance.

    (282 words)
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    Source: OECD Health Data 2006

    Beyond nursing

    Traditionally a male bastion in many countries, the medical profession has seen the proportion of female doctors steadily increasing, accounting now for an average of 38% of all doctors in OECD countries, up from 24% a quarter of a century ago.

    (221 words)
  • If at first you don’t succeed…

    Does repeating a year in school help educational performance? The 2006 Education at a Glance, an annual report, says that although many teachers and education administrators see repeating as a good way of getting children to improve, repeat students are no more likely to do well than non-repeating classmates.

    (256 words)
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    Source:OECD in figures 2006
    StatLink: http://dx.doi.org/10.1787/680124755435

    Chinese warming

    Although natural phenomena such as volcanic eruptions or warm ocean currents, or even the earth’s tilt, might all contribute to global warming, carbon dioxide (CO2) generated by human activity–from running homes and factories to flying planes and mowing lawns–is accepted as a major culprit.

    (170 words)
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    Polish innovation

    After two years of slow growth and rising unemployment, GDP in Poland finally turned around in 2004 and is set to pick up to around 4.5% in 2006-07. According to the latest OECD Economic Survey of Poland (June 2006), the long process of convergence with EU partners may have resumed, though with GDP per head still under 45% of the EU average, there is much to be done.

    (246 words)
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    Source: IEA

    Renewable energy

    The possibility of using renewable energy to produce electricity on a significant scale is a heated debate. The potential of hydropower is well established, and other sources such as geothermal, biomass, solar and wind, even ocean energy, now hold promise. Moreover, they are attractive because they reduce reliance on imported fossil fuels and help cut CO2 emissions. On a micro-scale, to heat home water for instance or run farms, these sources are starting to prove themselves.

    (229 words)
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    Source: OECD in Figures 2006-2007
    Statlink: http://dx.doi.org/10.1787/136634674025

    Broadband expansion

    Despite the dot.com crash of 2001, growth in broadband has been strong. Indeed, the number of broadband Internet connections in OECD countries has risen from an average of 2.9 subscribers per 100 inhabitants in 2001 to 13.6 per 100 in December 2005.

    (172 words)
  • Foreign talent

    Matching jobs and qualifications is never easy. Some people inevitably work in jobs for which they are overqualified, but the rate of overqualification is higher among foreign-born populations.

    (139 words)
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    Home dear home

    Are house prices peaking? They have certainly risen strongly, even in real terms – that is, when adjusted for inflation – since the mid-1990s in most OECD countries and, as the latest OECD Economic Outlook reports, their current upswing is the longest of its kind since the 1970s.

    (256 words)
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    Celtic waste

    Ireland, which has been the OECD’s fastest growing economy in recent years, also produces the most municipal waste per capita in the OECD area, at some 760 kilograms per head in 2003, according to the latest OECD Factbook.

    (221 words)
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    Games world

    Playing computer and video games is a booming industry, but in only a few countries is it the main reason why people go online. For instance, many Danes click online for government information, while the Swiss use the net more for job hunting.

    (207 words)
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    Raising Mexico's potential

    Mexico’s economic performance has improved, but not by enough, according to the OECD Economic Survey of Mexico released late last year. Since the 1995 financial crisis, Mexico has made progress in terms of economic stability, and the economy is far more open, too. But while poverty has fallen, it remains widespread.

    (239 words)
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    Pension funds

    Pensions funds in the OECD area have grown sharply over the last decade, from US$5.9 trillion in 1994 to US$15.6 trillion by 2004, representing a compound growth rate of 10.2% per annum.

    (236 words)
  • Source: OECD
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    Unhealthy outlook

    The public cost of health and long-term care in OECD countries will double by 2050 if current trends continue, a new OECD report finds. The rising medical demands of ageing and wealthier populations could send average health costs in the OECD area up from 6.7% of GDP to 12.8%. Even if governments manage to contain that rise, spending would still reach the equivalent of around 10% of GDP by the middle of the century.

    (252 words)
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    Owning up

    Home ownership, rather than rented accommodation, has become the norm in most OECD countries over the last 20 years. In fact, Germany is the only OECD country where the owner occupation rate is well below 50% of the total.

    (240 words)
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    Wealthy fun

    Work may drive growth, but for most people, more free time contributes to well-being, as long as it is not accompanied by lower income. Still, one often-heard remark about the gap in economic performance between OECD countries is that US workers may earn more money but they work longer hours, whereas Europeans prefer more leisure to more work, or indeed, more money, and so are better off.

    (241 words)
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    Working poor?

    Poverty is multifaceted by nature, making cross-country comparisons difficult. Some countries may have a large poverty rate but a high turnover in and out of poverty, implying short poverty spells by many people. Also, poverty incidence may be low in aggregate terms, but with only a low probability of getting out of poverty permanently.

    (238 words)
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    Life values

    Is there a connection between health spending and life expectancy? Not necessarily. As the latest edition of the OECD in Figures 2005 points out, the Japanese have the highest life expectancy in the OECD area, but their health spending, at nearly 8% of GDP, is far from being the highest. The US on the other hand has the highest health spending at some 15%, yet it clocks in at just 22nd when it comes to life expectancy–Americans can nevertheless expect to live past 77. The lowest spender is Korea (5.6% of GDP), with a life expectancy also of 77 years.

    (211 words)
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    New atom age?

    Construction of Finland’s first nuclear reactor in three decades got under way in September 2005. When completed, the French-built third generation reactor will be the first in western Europe since 1991. Is this the beginning of a new expansion phase?

    (235 words)
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    Virtual solution

    Should water-scarce countries import water-intensive products and cultivate less water-intensive ones? After all, since all goods contain a certain amount of water in their production, exporting farm produce is rather like exporting water, albeit in virtual form. A thousand litres of water may be needed to produce a kilo of wheat, but five to ten times more is needed for a kilo of meat.

    (237 words)
  • Fewer jobs for life

    Many governments have made deliberate efforts to cut back on their civil service employment in recent years, both to contain public expenditure and also as part of wider regulatory reforms. Public servant jobs in central, regional and local administrations have decreased, sometimes sharply, in several countries, but have risen markedly in a few others, including Ireland, the Netherlands and Spain. Staffing has risen at regional or local levels in some countries, such as Japan and the US.

    (211 words)
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    Where’s the meat?

    The global meat sector has suffered from bad press in recent years, with sales affected by trade bans and consumer caution in light of scares from the likes of mad-cow disease (BSE) and avian flu.

    (220 words)
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    Smoother surface

    Anyone driving across different countries will be struck by the different qualities of national road networks. Yet, even the smoothest asphalt requires frequent maintenance, often at great cost in terms of money, traffic disruptions and so on.

    (214 words)
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    Trade interdependency

    One characteristic of globalisation is the growing interdependency of countries and regions in all areas of international transactions. Take imports. According to the latest OECD Economic Globalisation Indicators, between 1995 and 2003 the share of demand met by imports in the OECD area increased from 34% to 41% for goods, and from 35% to 48% for services. Imports to the EU from other OECD countries remained very high, albeit easing slightly to 71% between 1995 and 2003.

    (188 words)
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    Suicide battle

    Suicide rates have fallen in most OECD countries, but have risen sharply in others. The highest rates occur in Hungary, Finland, Japan and Korea, with the lowest in Spain, UK, Italy and Greece. Some 130,000 deaths occurred in OECD countries in 2002. Suicides are up to four times greater among men than women.

    (226 words)
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