Box sets » June 2015

Age-related spending projections in Europe
Our 2015 long-term fiscal projections suggested that, if left unaddressed, the public sector finances would have come under increasing pressure over the next 50 years due to rising age-related expenditure. This box compared our long-term age related spending projections with projections from the Ageing Working Group (2015) for the EU countries between 2020 and 2060.

Economy categories:
Labour market    Population and migration   

Fiscal categories:
Public spending    Departmental spending    Education    Health   

Cross-cutting categories:
International comparisons    Demographics    Ageing population   

Economic cycles and the long-term projections
In our 2015 Fiscal sustainability report, we assumed that GDP grows in line with its historical trend. This in effect implied 47 years of uninterrupted trend economic growth in our central projections. This box considered the alternative paths for debt as a share of GDP under an symmetric and asymmetric cycle, highlighting the sensitivity of the net debt projections to economic cycles.

Economy categories:
Output gap    Nominal GDP   

Fiscal categories:
Primary balance    Public sector net debt   

Drivers of rising health spending
Health spending rose faster than GDP in almost all European countries over the past decade. This box investigated most notable long-term drivers of real spending on health care: demographic effects, income effects and other cost pressures.

Economy categories:
Population and migration    GDP by income    Productivity    Labour market   

Fiscal categories:
Health    Departmental spending    Public spending   

Cross-cutting categories:
Demographics    Ageing population    International comparisons