Latest news with #MathiasCormann
Al Etihad
4 days ago
- Business
- Al Etihad
OECD job markets resilient but population ageing to cause labour shortages, fiscal pressures
10 July 2025 00:23 ABU DHABI (ALETIHAD)Job markets remain resilient, with labour force participation reaching record highs in many OECD countries and unemployment at historically low levels. However, there are signs of a slowdown as geopolitical and trade policy uncertainties dampen economic activity, according to a new OECD OECD Employment Outlook 2025 reports that OECD-wide employment, which reached 668 million in May 2025 – up by about 26% since 2001 – is expected to grow by around 1.1% in 2025 and 0.7% in been at or below 5.0% for more than 3 years, the OECD-wide unemployment rate stood at 4.9% in May 2025, and is projected to remain near this low level through 2026. It was 0.5 percentage points higher for women than for gaps in employment and labour force participation are narrowing in many countries. Between the first quarter of 2024 and the first quarter of 2025, on average across OECD countries, the employment rate of women rose by around 0.2 percentage points more than that of men. The gender gap in the participation rate narrowed by 0.3 percentage points over the same period, largely driven by more women entering the labour wages are growing across most of the OECD, but remain below the levels seen in early 2021, just before the post-pandemic inflation surge, in around half of countries.'OECD labour markets continue to be resilient: employment rates have risen further over the past year to 72.1% in the average OECD country, the highest level since at least 2005,' OECD Secretary-General Mathias Cormann said.'But population ageing is set to lead to significant labour shortages and fiscal pressures. We estimate that, by 2060, the working-age population will decline by 8% in the OECD and annual public spending on pensions and health will rise by 3% of GDP. Ambitious policy action is needed to improve job opportunities for older workers, unlock the untapped labour market potential of women and young people, and revive productivity growth, including by ensuring that workers have the right skills to benefit from new AI tools.'Population AgingThe outlook forecasts that the working-age population will decline by more than 30% in a quarter of OECD countries by 2060. The old-age dependency ratio – defined as the ratio of individuals aged 65 years and above to the working-age population – increased massively from 19% in 1980 to 31% in 2023 and is projected to rise further to 52% by decisive policy action, GDP per capita growth would slow down by about 40% in the OECD area – from 1% per year in 2006-19 to 0.6% per year in 2024-60 on average. All but two OECD countries would see their per-capita growth reducing the rate of labour market departures by older workers to the level in the 10% of OECD countries with the lowest departure rates, the outlook shows that OECD countries could significantly reduce the projected loss in GDP per capita growth from demographic will involve promoting career mobility for mid-career and older workers, and fostering lifelong learning to ensure that older workers have the relevant skills and can adapt to new labour market needs and opportunities. Reviving productivity growth will also need to be part of the solution, including by promoting the trustworthy use of AI and other digital technologies. Source: Aletihad - Abu Dhabi
Fibre2Fashion
15-06-2025
- Business
- Fibre2Fashion
OECD projects German GDP to grow 0.4% in 2025, 1.2% in 2026
German gross domestic product (GDP) is projected to grow by 0.4 per cent in 2025 and 1.2 per cent in 2026 and inflation there is expected to average 2.4 per cent in 2025 and 2.1 per cent in 2026, according to the latest Economic Survey of Germany released by the Organisation for economic Cooperation and Development (OECD). Germany's economy has been resilient, but reforms are needed to unlock business dynamism and investment, the report noted. German GDP may grow by 0.4 per cent in 2025 and 1.2 per cent in 2026 and inflation there is likely to average 2.4 per cent in 2025 and 2.1 per cent in 2026, the OECD Economic Survey of Germany said. Reforms are needed to unlock business dynamism and investment. Administrative burdens for firms and regulatory barriers to competition should be removed and skilled labour shortages addressed, it said. Reducing administrative burdens for firms and regulatory barriers to competition while addressing skilled labour shortages will help revive economic growth and maintain high living standards across the country, an OECD release said citing the report. The recent reform of fiscal rules will enable increases in defence spending and address a large infrastructure investment backlog. To ensure medium-term fiscal sustainability, this reform should be combined with measures to raise spending efficiency, reallocate spending and broaden the tax base, while addressing rising spending pressures due to population ageing, the report suggested. Phasing out fiscal incentives for early retirement, while improving working conditions and incentives for older workers to work longer, would help stabilise the pension system, it recommended. 'Continuing to accelerate structural reforms is key to revive Germany's economic growth,' OECD secretary general Mathias Cormann said, launching the report in Berlin alongside German minister for economic affairs and energy Katherina Reiche. 'Combining the reform of fiscal rules with ambitious measures to reduce administrative burdens for firms and regulatory barriers to competition, and address skilled labour shortages, can spur greater business dynamism and boost productivity and growth,' he said. Administrative burdens for firms could be alleviated through greater efforts to review, simplify and harmonise existing regulations and administrative procedures across levels of government. Greater adoption of digital tools in the public administration could also ease the burdens of business registration and administrative processes, the report noted. To strengthen competition, occupational entry regulations and licensing requirements to open a business should be reduced. Skilled labour shortages should be addressed by improving work incentives for women, and older and lower-income workers, as well as further reducing barriers to skilled migration and continuing to improve education and training policies, it noted. Designing policies to help regions embrace structural change is important for maintaining high living standards across the country. To unlock new opportunities for regions with slower growth and lower incomes, better coordination of placed-based, industrial and innovation policies is needed, the report added. Fibre2Fashion News Desk (DS)
Zawya
05-06-2025
- Business
- Zawya
Egypt, OECD explore deeper cooperation during ministerial meetings in Paris
Arab Finance: Minister of Planning and Economic Development, and International Cooperation Rania Al-Mashat held a series of high-level meetings with officials from the Organization for Economic Cooperation and Development (OECD) in Paris to discuss ways to deepen bilateral cooperation and support Egypt's development agenda, as per a statement. The discussions took place on the sidelines of the OECD Ministerial Council meetings, held this year under the theme "Leading the Way towards Resilient, Inclusive, and Sustainable Prosperity through Rules-Based Trade, Investment, and Innovation." In her meeting with OECD Secretary-General Mathias Cormann, Al-Mashat expressed appreciation for the strong and evolving relationship between Egypt and the OECD, highlighting the importance of the bilateral cooperation program and Egypt's active role in the MENA-OECD Initiative on Governance and Competitiveness for Development. She noted that this partnership underscores a shared commitment to advancing institutional reform, evidence-based policymaking, and sustainable development. Al-Mashat stressed that Egypt's co-chairing of the MENA initiative allows for deeper regional engagement and mutual learning, drawing on practical reform experiences. She also welcomed the extension of the Egypt-OECD Country Program through 2025, describing it as a cornerstone of joint cooperation. The program encompasses 35 projects across five key pillars and was designed through a participatory process that reflects Egypt's commitment to reform ownership and policy coherence. The minister noted ongoing coordination among various Egyptian stakeholders to ensure effective implementation of the program, expressing hope that the collaboration would move beyond policy recommendations to include actionable tools and implementation plans that can accelerate development outcomes. Moreover, Al-Mashat added that the program not only reinforces Egypt's strategic partnership with the OECD but also represents a significant step toward potential OECD membership. Cormann affirmed the OECD's commitment to expanding its membership and described the Egypt-OECD Country Program as a vital pathway for Egypt to become the first Arab and African member of the organization. In a separate meeting with Mary Beth Goodman, Deputy Secretary-General of the OECD, discussions focused on the finalization of the organization's new development strategy. Goodman praised Egypt's valuable input during the consultation process, noting the importance of participatory engagement in addressing global development challenges, particularly in the context of declining development financing. Al-Mashat emphasized Egypt's pioneering experience in channeling development finance toward the private sector, which has now become the primary beneficiary over the government. Goodman commended this model and underscored its potential as a reference for other OECD member states. Additionally, Al-Mashat met with Andreas Schall, Director of Global Relations and Cooperation at the OECD, to discuss the future of bilateral ties and Egypt's potential accession process. The meeting also covered OECD country program evaluation mechanisms and how Egypt can benefit from the experiences of existing member countries. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Hans India
04-06-2025
- Business
- Hans India
Indian economy beats global slowdown: OECD
New Delhi: India continues to defy the global slowdown, the OECD's latest 'Economic Outlook' said on Tuesday, projecting the country's economy to grow by 6.3 per cent in 2025 and 6.4 per cent in 2026. Strong domestic demand, resilient services and manufacturing sectors, and ongoing infrastructure investments have been cited as key drivers for India's strong performance amid global uncertainties. The report also cautioned that external risks — particularly from global trade frictions — could spill over into export-heavy segments. China, on the other hand, is losing steam. Its growth is projected to moderate from 5.0 per cent in 2024 to 4.7 per cent in 2025 and 4.3 per cent in 2026. The Outlook projects global growth slowing from 3.3 per cent in 2024 to 2.9 per cent in both 2025 and 2026. 'The slowdown is expected to be most concentrated in the United States, Canada, Mexico and China, with smaller downward adjustments in other economies,' it noted. Inflationary pressures have resurfaced in some economies. Higher trade costs in countries raising tariffs are expected to push inflation up further, although the impact will be partially offset by weaker commodity headline inflation in the G20 economies is collectively expected to moderate from 6.2 per cent to 3.6 per cent in 2025 and 3.2 per cent in 2026. 'The global economy has shifted from a period of resilient growth and declining inflation to a more uncertain path,' OECD Secretary-General Mathias Cormann said in a statement. 'Governments need to engage with each other to address any issues in the global trading system positively and constructively through dialogue – keeping markets open and preserving the economic benefits of rules-based global trade for competition, innovation, productivity, efficiency and ultimately growth,' Cormann emphasised. On the upside, a reversal of new trade barriers would boost global growth prospects and reduce inflation. A peaceful resolution to Russia's war against Ukraine and of ongoing conflicts in the Middle East could also improve confidence and incentives to invest.
Daily Mail
03-06-2025
- Business
- Daily Mail
Global economy set for slowest growth since Covid as Trump's trade wars take their toll
The world economy is on course for the slowest growth since the pandemic as Donald Trump's trade wars take their toll, the OECD warned yesterday. The latest forecast from the Paris-based Organisation for Economic Cooperation and Development pointed to growth of just 2.9 per cent this year and next. And Bank of England governor Andrew Bailey gave his strongest comments yet on the impact of Trump's tariff war on global trade, saying it had been 'blown up'. The impact of the disruption was laid bare in separate figures showing China's manufacturing centre went into reverse last month as US tariffs bite. The OECD's forecast for a slowdown would mean world growth falling below 3 per cent for the first time since 2020 – when Covid lockdowns sent business activity into reverse. Back in March it had predicted 3.1 per cent growth in 2025 and 3 per cent in 2026. The US, the world's biggest economy, saw a dramatic downgrade from 2.2 per cent to 1.6 per cent for this year. Britain is expected to grow by 1.3 per cent, down from 1.4 per cent. OECD secretary-general Mathias Cormann said: 'The global economy has shifted from a period of resilient growth and declining inflation to a more uncertain path. Today's policy uncertainty is weakening trade and investment, diminishing consumer and business confidence and curbing growth prospects.' Trump introduced swingeing tariffs on trading partners on 'Liberation Day' at the start of April – before he was forced into a 90-day pause when markets sold off sharply. Separate tariffs have also been introduced covering the likes of steel and cars. UK businesses continue to suffer despite a much-vaunted deal between Britain and the United States – which was announced nearly a month ago but has yet to take effect. It means that a decision by Trump to hike additional tariffs on steel from 25 per cent to 50 per cent will hit British industry despite the promise of relief. Yesterday, Bank governor Bailey highlighted in stark terms the damaging impact that the disarray would have on investment decisions and broader global growth. He told the Commons Treasury select committee: 'The overall picture on trade now, I'm afraid, is one where the rules-based system is dead. 'Over a long time we built up a pattern of world trade agreements which led to a lowering of tariffs. 'I'm afraid that system has now really been blown up to a considerable degree, let's be honest, by all of this. That has very serious consequences for the world economy.'
