OECD: The World Will Face Enormous Financial Difficulties in The Coming Decades

In its latest policy papers, the Organization for Economic Co-operation and Development (OECD) warned that the world will likely face massive financial difficulties in the coming decades, worse than the ballooning public debt seen during the COVID-19 pandemic.

According to the long-term scenario, the slowdown in large emerging economies, demographic change and slowing productivity gains will push economic growth at the level of the 38 OECD and G20 members to 1.5 percent in 2060 from about 3 percent currently, the organization said.

At the same time, she stated, countries would face rising costs, particularly from pensions and health care, and that to maintain public services and benefits while stabilizing debt in that environment, governments would have to increase revenues by about 8% of GDP.

“According to its long-term scenario, a deceleration in large emerging economies, demographic change and slowing productivity gains will drag trend economic growth among the OECD’s 38 members and the Group-of-20 nations to 1.5% in 2060 from around 3% currently. “

“At the same time, states will face rising costs, particularly from pensions and health care.”