Favourable monetary conditions
GDP is projected to grow almost 3% a year before abating somewhat in 2007. Recent house price increases are likely to sustain consumption growth into 2006.
Starting with a slightly negative output gap (or spare capacity), economy-wide wage and price inflation is expected to gather pace towards 2007, with the construction sector already now beginning to show signs of overheating.Monetary conditions, reinforced by new loan types on the mortgage market, are providing stimulus for the economy and this is likely to continue with short-term interest rates remaining stable in line with those of the European Central Bank. In this context, the sizeable extra revenues from North Sea oil exploration must be used to reduce public debt, with fiscal policy helping to contain aggregate demand. Measures to raise labour supply should also be considered.
Population (000s), 20045 401
Area (000 sq km)43
GDP (Billion USD), 2004241.4
Life expectancy at birth (Women, Men), 2003 79.5, 74.9
Total labour force (000s), 20042 883
Government typeConstitutional Monarchy
Indicators% change unless otherwise indicated
GDP growth3.02.72.4
Household savings ratio0.80.50.4
Consumer price index1.81.72.4
Short-term interest rate (%)
Unemployment rate (%)
General government financial balance (% GDP)
Current account balance (% GDP)
Source: OECD© OECD Observer, No. 252, November 2005

Economic data

GDP growth: -1.8% Q1 2020/Q4 2019
Consumer price inflation: 0.9% Apr 2020 annual
Trade (G20): -4.3% exp, -3.9% imp, Q1 2020/Q4 2019
Unemployment: 8.4% Apr 2020
Last update: 9 July 2020

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