The global
economy is on course this year for its fastest growth in six years as a
rebound in trade helps offset a weaker outlook in the United States, the
OECD forecast on Wednesday.
The
global economy is set to grow 3.5 percent this year before nudging up
to 3.6 percent in 2018, the Paris-based Organisation for Economic
Cooperation and Development said, updating its forecasts in its latest
Economic Outlook.
That estimate for 2017 was not only a slight improvement from its last estimate in March for 3.3 percent growth, but it would also be the best performance since 2011.
Yet despite this brighter outlook, growth would nonetheless fall disappointingly short of rates seen before the 2008-2009 financial crisis, OECD Secretary General Angel Gurria said.
While recovering trade and investment flows were supporting the improving economic outlook, Gurria said barriers in the form of protectionism and regulations needed to be lifted to ensure stronger growth.
The improvement would also not be enough to satisfy people's expectations for better standards of living and reduce growing income inequality, he said.
The OECD saw an improved global outlook even though it downgraded its estimates for the United States, despite a weaker dollar boosting exports and tax cuts supporting household spending and business investment.
The OECD forecast U.S. growth of 2.1 percent this year and 2.4 percent next year, down from estimates in March of 2.4 percent and 2.8 percent, respectively.
OECD chief economist Catherine Mann attributed the downgraded outlook to delays in the Trump administration pushing ahead with planned tax cuts and infrastructure spending.
The weaker U.S. outlook was offset by slightly improved perspectives for the euro zone, Japan and China.
That estimate for 2017 was not only a slight improvement from its last estimate in March for 3.3 percent growth, but it would also be the best performance since 2011.
Yet despite this brighter outlook, growth would nonetheless fall disappointingly short of rates seen before the 2008-2009 financial crisis, OECD Secretary General Angel Gurria said.
While recovering trade and investment flows were supporting the improving economic outlook, Gurria said barriers in the form of protectionism and regulations needed to be lifted to ensure stronger growth.
The improvement would also not be enough to satisfy people's expectations for better standards of living and reduce growing income inequality, he said.
The OECD saw an improved global outlook even though it downgraded its estimates for the United States, despite a weaker dollar boosting exports and tax cuts supporting household spending and business investment.
The OECD forecast U.S. growth of 2.1 percent this year and 2.4 percent next year, down from estimates in March of 2.4 percent and 2.8 percent, respectively.
OECD chief economist Catherine Mann attributed the downgraded outlook to delays in the Trump administration pushing ahead with planned tax cuts and infrastructure spending.
The weaker U.S. outlook was offset by slightly improved perspectives for the euro zone, Japan and China.
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