Economic growth is set to fall well below potential in 2008 and 2009, before gradually recovering in 2010. The weak US economy and a fall in oil production will cut exports over the next several quarters, while the effects of the financial turmoil will depress domestic demand growth. Activity will recover through 2010 as global economic conditions improve. Inflation will return to near the target rate as commodity prices fall, activity slows and monetary tightening keeps expectations anchored, although the recent sharp depreciation of the peso will put upward pressure on prices.

Denmark is confirmed as the OECD’s highest-tax country, followed by Sweden, while Mexico and Turkey remain the lowest-taxing countries, the latest 2008 edition of Revenue Statistics says. Denmark’s tax-to-GDP ratio stood at 48.9% in 2007, while Turkey’s was at 23.7% of GDP.

Climate change is a pressing challenge, requiring leadership and determined action. At the same time, people are concerned that policies do not put them at an economic disadvantage or unnecessarily undermine their welfare.

Can governments balance these concerns? The OECD’s Environment Policy Committee meets at ministerial level on 28-29 April 2008 under the theme of global competitiveness. Some non-OECD developing countries will also participate, as will stakeholders from business, labour and civil society.

After a moderate slowdown in 2007, reflecting a weakening of external demand, GDP growth is expected to accelerate in the course of 2008 and reach 4.25% in 2009. The approval of the fiscal reform should boost business confidence, underpinning stronger domestic and foreign investment.

Mexico has made great economic strides over the past decade, and output growth is expected to reach 3.5-4% in 2008. However, the latest Economic Survey of Mexico says that only a renewed reform effort will raise the economy to a higher plane of growth and help close the gap with wealthier OECD countries.

Mexico’s economic performance has improved, but not by enough, according to the OECD Economic Survey of Mexico released late last year. Since the 1995 financial crisis, Mexico has made progress in terms of economic stability, and the economy is far more open, too. But while poverty has fallen, it remains widespread.

The OECD’s 30 member countries announced the appointment of Angel Gurría, former foreign minister and finance minister of Mexico, as secretary-general of the OECD from 1 June 2006. Mr Gurría will succeed Donald J. Johnston, who is retiring after two terms at the top of the organisation.

We hope we can move ahead collectively to improve the situations of those nations that urgently need development”, said president of Mexico, Mr Vincente Fox, on visit to the OECD of 15 November 2002. “We need things to improve, because where there is no growth, there are no jobs. And where there are no jobs, there is more poverty, violence, crime and political instability. The more fragile countries are already paying a heavy price for this 18-month recession.”