Ratio of the inactive elderly population aged 65 and over to the labour force
The percentage of the population that is 65 years or older is rising in all OECD countries and is expected to continue doing so. The number of inactive elderly as a ratio of the number in the total labor force is also increasing throughout OECD countries. These trends have a number of implications for government and private spending on pensions and health care and, more generally, for economic growth and welfare. The youngest populations (low shares of population aged 65 or over) are either in countries with high birth rates such as Mexico, Iceland and Turkey or in countries with high immigration, such as Australia, Canada and New Zealand. All these countries will, however, experience significant ageing over the next 50 years. The dependency ratio (i.e. the ratio of inactive elderly to the total labor force) is projected to be above 50% in Finland, Italy and Japan by 2020. This means that, for each elderly inactive person, there will be fewer than two persons in the labor force. The lowest dependency ratios by 2020, under 30%, are projected for Iceland, Mexico and Turkey. All countries will experience a further sharp increase in the dependency ratio over the period 2020 to 2050.
Life insurance premiums in USD millions
While Executive examined the Middle East and North Africa’s insurance sector in its special report, OECD data indicates disparity within the industry between advanced and industrialized countries. Life insurance premiums are hitting higher levels in the West, with aggregate US premiums hitting $607 million, the UK with $231 million, and Japan, with $257 million. Among the lowest aggregate life insurance premiums is Iceland, with $44 million and Turkey, with $774 million. These figures are perhaps buoyed by the culture of security as nations reach higher levels of prosperity but continue to face natural and man-made risks. In the US, UK, and Japan, life insurance plans are widely available and marketed, making the market apparent to the cautious consumer.
Technology balance of payments, USD millions
OECD countries are currently suffering amidst a dearth in in-country technology development, forcing many of them to import their technology from abroad. While the majority of Europe continues to rely of overseas technology development, as well as from Europe’s own France, Germany, and Luxembourg, Japan, the US, and the UK reported balance of payments surplus in their technology industries, reaching over twelve million dollars in Japan, about 15 million dollars in the UK, and nearly 33 million in the US, largely because of the government’s policy of fostering and encouraging talent, including Asia scientists who continue to form the backbone of the country’s industry. For Europe to overcome this lack of in-continent development, the European Union must create policies focused on talent acquisition and a competitive sector vis-à-vis foreign rivals.
Direct investment flows as percentage of GDP
Advanced economies in the OECD are attracting, for the most part, sustainable levels of direct investment flows, including foreign direct investment levels, which are broadly on par with foreign outflows. Among the ‘most invested’ countries are Belgium, with inflows hitting 39.2% of gross domestic product (GDP) and outflows reaching 33.6% of GDP. Hungary, which has a surplus in direct investment flows, has outflows accounting for 27.5% of GDP while its inflows only reach 21.4%. While most countries probably want to become net exporters of investment, many in the OECD are still open for foreign investment to help their businesses expand and their economies grow. The giant economies of OECD members, including Germany, the US, and the UK are maintaining lower levels of investment flows, perhaps paled by the countries’ significantly large GDPs or because investors looking for the ‘hot’ investments have found themselves turning to the developing world, which many are increasingly betting on in light of the subprime crisis in the US and the UK.
