OECD
MacroDefinition
The Organisation for Economic Co-operation and Development, a Paris based group of 38 mostly high income democracies, founded in 1961 to replace the body that ran Marshall Plan aid. Governments use it to compare notes: it gathers statistics the same way for every member, publishes twice yearly economic outlooks, and writes rules that countries then adopt at home, from the 15% global minimum corporate tax to anti bribery treaties and the PISA school tests.
For investors the value is the data. OECD series on growth, inflation, unemployment, house prices and household debt are built to be comparable across countries, and its composite leading indicators give an early read on turning points in each economy. When two countries define a figure differently, the OECD version is usually the one that lines up.
For investors the value is the data. OECD series on growth, inflation, unemployment, house prices and household debt are built to be comparable across countries, and its composite leading indicators give an early read on turning points in each economy. When two countries define a figure differently, the OECD version is usually the one that lines up.
Example
A trader comparing unemployment in Japan and Germany uses the OECD harmonised rate rather than each government release, because the two national definitions differ. The OECD composite leading indicator for a country sliding below 100 and still falling is read as growth slowing within a few months.