Global GDP growth is projected to increase to around 3.5% in 2017 and 3.7% in 2018 from 3% in 2016,slightly improved since the OECD’s June Economic Outlook. The upturn has become more synchronised across countries. Investment, employment and tradeare expanding.
The OECD projects that the global economy will grow by 3.5 percent this year and 3.7 percent in 2018, with industrial production and trade picking up and further acceleration in the rebound of technology spending.
However, strong and sustained medium-term global growth is not yet secured. The recovery of business investment and trade remainsweaker than needed tosustain healthy productivity growth. Wage growth has been disappointing, keeping inflation at low levels. Strong future growth in emerging market economies will depend on deeper reform.
“The short-term outlook is more broad-based and the upturn is promising, but there is no room for complacency,” said OECD Chief Economist Catherine L. Mann. “Monetary policy should remain accommodative in some economies but with an eye on financial stability so as to remain supportive of further rebalancing towards fiscal and structural initiatives. 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.”
“As fiscal policy has eased in many economies, it is crucial that the fiscal room be used to deliver on growth-enhancing and equity-friendly fiscal measures.”
US Growth Of 2.1% In 2017, 2.4% In 2018 (Both Unchanged)
Euro Zone Growth Of 2.1% In 2017 (+0.3), 1.9% In 2018 (+0.1)
Japan Growth Of 1.6% In 2017 (+0.2), 1.2% In 2018 (+0.2)
UK Growth Of 1.6% In 2017, 1.0% In 2018 (Both Unchanged)
China Growth Of 6.8% In 2017 (+0.2), 6.6% In 2018 (+0.2)
Source: OECD