Publication - Modest pick-up in global growth but risks and vulnerabilities could derail recovery
7/3/2017 - Global economic growth is expected to pick up modestly next year to around 3.6 % from a projected 3.3% in 2017 but risks of rising protectionism, financial vulnerabilities, potential volatility from divergent interest rate paths and disconnects between market valuations and real activity hang over the outlook, according to the OECD.
The projected improvement largely reflects continuing and expected combined fiscal and structural initiatives in the major economies - notably China, Canada and the United States - together with a slightly more expansionary stance in the euro area, which could be more ambitious. Such policies are needed to catalyse private demand to boost global activity and reduce inequalities.
The global economy portrayed by the Interim Economic Outlook remains beset by sub-par GDP growth and high inequality, calling for policy responses that advance inclusive growth in the context of increased economic integration.
Commenting on the Outlook, OECD Secretary-General Angel Gurría said: “Growth is still too weak and its benefits too narrowly focussed to make a real difference to those who have been hit hard by the crisis and who are being left behind. Now, more than ever, governments need to take actions that restore people’s confidence while at the same time resisting turning inwards or rolling back many of the advances that have been achieved through greater international co-operation.”
The projected improvement largely reflects continuing and expected combined fiscal and structural initiatives in the major economies - notably China, Canada and the United States - together with a slightly more expansionary stance in the euro area, which could be more ambitious. Such policies are needed to catalyse private demand to boost global activity and reduce inequalities.
The global economy portrayed by the Interim Economic Outlook remains beset by sub-par GDP growth and high inequality, calling for policy responses that advance inclusive growth in the context of increased economic integration.
Commenting on the Outlook, OECD Secretary-General Angel Gurría said: “Growth is still too weak and its benefits too narrowly focussed to make a real difference to those who have been hit hard by the crisis and who are being left behind. Now, more than ever, governments need to take actions that restore people’s confidence while at the same time resisting turning inwards or rolling back many of the advances that have been achieved through greater international co-operation.”
The Interim Economic Outlook is available here. For more information, visit www.oecd.org/economy/economicoutlook.htm.
page source http://www.oecd.org/economy/
