OECD economic outlook upgrades global growth forecast, but United Kingdom still lags

Reserve Bank assistant governor Luci Ellis

Reserve Bank assistant governor Luci Ellis

The OECD projects that the global economy will grow by 3.5% this year and 3.7% in 2018, with industrial production and trade picking up and further acceleration in the rebound of technology spending. "Structural efforts need to be intensified to bolster the nascent investment recovery, to address slow productivity growth and to ensure the recovery yields benefits for all", Mann added in her address.

Japan, which has suffered from one of the slowest growth rates in the G7 for the last 25 years, will also see its GDP growth rate accelerate to a higher level than the UK's in 2018 after the Paris-based club for the world's richest countries revised its economic outlook for next year.

In addition to that, the OECD expects the euro area economy to grow at a faster pace during 2017 than previously.

"Policy must not be complacent in the face of stronger short-term momentum". While the OECD didn't revise its forecast for the United Kingdom - which is for 1.6% growth in 2017, falling to just 1% in 2018 - it continues to expect the United Kingdom will exit the European Union without a free trade deal. The depreciation of sterling has modestly improved export prospects but also pushed up inflation.

The Organisation for Economic Co-operation and Development has upgraded its economic growth forecasts for the 19-country eurozone following a run of upbeat news. Rising corporate profits should help strengthen business investment through 2018, but low wage growth and fiscal consolidation are likely to weigh on activity in 2018, when growth is expected at 1.2%.

"But weak productivity and real wage growth persist", it said.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.