Unemployment high
Growth of GDP is expected to fall to 1.8% in 2005, as the impact of increased oil prices and the slowdown of demand in major export markets more than offset the positive stimulus from deficit financed tax reductions.
With growth gathering pace slowly, reaching 2.25% in 2007, unemployment will remain high by historic standards. The impact of oil prices on inflation will fade by 2007.The government deficit is projected to decline only modestly by 2007. However, further substantial reductions in government spending will be necessary to lower the relatively high level of government debt in relation to GDP significantly, and make more room for future increases in ageing-related spending.
Population (000s), 20048 175
Area (000 sq km)84
GDP (Billion USD), 2004292.3
Life expectancy at birth (Women, Men), 2003 81.6, 75.6
Total labour force (000s), 20043 939
Government typeFederal Republic
Indicators% change unless otherwise indicated
GDP growth1.82.12.3
Household savings ratio8.78.88.3
Consumer price index2.21.81.4
Short-term interest rate (%)
Unemployment rate (%)
General government financial balance (% GDP)-2.0-2.0-1.5
Current account balance (% GDP)-0.4-0.10.3
Source: OECD© OECD Observer, No. 252/253, November 2005

Economic data


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