OECD Economic Outlook, Volume 2010 Issue 2, Preliminary version, 88 November 2010

The OECD Economic Outlook analyses the current economic situation and examines the economic policies required to foster a sustained recovery in member countries. The present issue covers the outlook to end-2012 for both OECD countries and selected non-OECD economies. Together with a wide range of cross-country statistics, the Outlook provides a unique resource to keep abreast of world economic developments.



In addition to the themes featured regularly, this issue contains a special chapter entitled “Fiscal consolidation: Requirements, timing, instruments and institutional arrangements. It addresses the following questions: • How much budget consolidation is required in individual OECD countries to stabilise the ratio of government debt to GDP? What are the requirements to bring gross debt ratios to 60% of GDP? • What factors should determine the appropriate speed of consolidation? • What instruments should be employed for consolidation? What kind of public spending should be cut and what kind of taxes should be raised? • What fi scal rules and institutions are most likely to foster consolidation?

Table of Contents
Editorial: Rebalancing Policy
Chapter 1. General Assessment of the Macroeconomic Situation
Overview
Forces acting on the OECD economies
Growth prospects
Chapter 2. Development in Individual OECD Countries
Chapter 3. Developments in Selected Non-member Economies
Chapter 4. Fiscal Consolidation: Requirements, Timing, Instruments and Institutional Arrangements
Introduction
Fiscal consolidation requirements in a stylised long-term scenario
Fiscal consolidation requirements
The timing of consolidation
Instruments of consolidation
Institutional settings that foster fiscal consolidation
Statistical Annex