Public spending on social security at new high: OECD
By TIOL News Service
PARIS, OCT 22, 2016: THE New OECD data shows that public social spending to GDP ratio in 2016 remains at historically high levels in most OECD countries, at an average of 21% of GDP. Spending on areas such as benefits, pensions and healthcare was highest at just over 30% of GDP in France and Finland and is over 25% in Austria, Belgium, Denmark, Germany, Greece, Italy, Norway and Sweden. At the other end of the scale, Chile, Korea, Latvia, Mexico and Turkey spend less than 15% of GDP.
Most spending is on pensions, at just over 8% of GDP on average across the OECD, followed by health, where spending has increased from 4% in 1980 to 6%. Other areas are much smaller – family benefits made up 2.1% of GDP and unemployment benefits just 0.9% of GDP.
Increases were highest in pensions, where spending in real terms between 2010-2013 increased in all OECD countries, except Estonia and Poland. This upward trend is a result of increasing life expectancy and the rising number of people retiring. Public spending on health continues to rise but by much less than in the years up to 2009 – only Israel, Japan and Mexico have recorded higher annual average growth since 2009 than before. Chile and Korea are the only countries where annual health spending rises each year exceed 5 per cent since 2005.
The database also includes estimates for social spending by companies, individuals or NGOs on areas such as health and pension benefits: this private social spending is equivalent to 2.7% of GDP on average across the OECD and highest at 11% in the United States.
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