OECD predicts global growth despite US slowdown
The global economy is set to grow at its fastest pace since 2011, according to the latest forecast from the Organisation for Economic Co-operation and Development (OECD).
Improved forecasts for Europe
However, the weaker prospects in the US were offset by improved forecasts for the eurozone, Japan and China. The eurozone upgrade from growth of 1.6 per cent to 1.8 per cent for the next two years was primarily on the back of improved output in Germany.The OECD added, “Beyond domestic policies, on the international front, policymakers need to harness the full range of international economic cooperation tools to level the playing field to ensure that international trade is governed by fair rules that are followed, that all businesses adhere to high standards of conduct, that cross-border tax arrangements are transparent and fair, that corruption is reduced, and that labour and environmental standards are respected.”Related news:
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“Major risk” for the UK economy
For the UK, the OECD is sticking to its predictions of 1.6 per cent growth this year and 1 per cent next, but it said the economy could slow in the coming years because of Brexit uncertainty and a consumer spending squeeze as a result of higher inflation overtaking wage growth.“Private consumption growth is projected to slow, as higher inflation holds back real earnings, but a weaker growth outlook should mitigate the extent of price pressures in the economy,” said the OECD’s economic outlook report.“Also, households are expected to continue to support their consumption by further reducing their saving rate. Business investment is projected to contract amid the large uncertainty and because of lower corporate margins. Weaker growth could push the unemployment rate (currently at a 40-year low of 4.6 per cent) above 5 per cent.”It said the decision to leave the European Union continued to represent a “major risk” to the UK economy, with the impact of Brexit very much dependent on what future trade arrangements the UK managed to reach with the remaining 27 members of the bloc.But the OECD added that the devaluation of sterling against both the dollar and euro since last June’s referendum was boosting exports and improving competitiveness.For related news and features, visit our Enterprise section.Access hundreds of global services and suppliers in our Online Directory Get access to our free Global Mobility Toolkit©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.