Kuwiat:OECD predicts "modest pick-up" in global economy in 2018Source: www.export-egypt.com 3/7/2017, Location: Middle East |
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The global economy is set to expand moderately in 2018 compared with projected growth this year, the Organisation for Economic Cooperation and Development (OECD) said , but the policy body warned that protectionism, financial vulnerabilities and market volatilities could hamper growth.
In its latest forecast, the OECD said that the world's economies should progress by 3.6 percent next year, registering a "modest pick-up" on the 3.3 percent growth rate predicted for all of 2017. The better performance in 2018 reflects "continuing and expected combined fiscal and structural initiatives in the major economies", in particular in the United States, China and Canada, the report indicated. The stagnating Euro zone, which is having difficulty re-boosting economic activity, will see a slight expansion but the OECD said this "could be more ambitious" and it urged policies that would bolster demand, boost economic activity and reduce inequalities. The United States, the world's largest economy, is forecast to witness stronger domestic demand and Gross Domestic Product (GDP) should expand there by 2.8 percent in 2018, after growth of 2.4 percent this year, as more expansionary fiscal policies take hold. In the Euro area, moderate growth will continue but this is being hampered by "high unemployment and underemployment" especially among younger people. GDP growth in 2017 and 2018 is projected to be unchanged at 1.6 percent in the Euro area. Growth in Japan is to pick up this year to 1.2 percent from 1.0 percent a year earlier and prospects are uncertain for 2018 and will depend on labour and wage reforms. Chinese growth, on the other hand, will continue to slip, falling to 6.3 percent in 2018 from 6.5 percent this year due to falling external demand and a new policy of boosting domestic consumption and services. But the OECD warned that global risks remain and urged government to "enhance economic resilience and strengthen the environment to boost growth." More equality and better productivity were cited as ways to improve the economic environment, in addition to structural steps and fiscal initiatives that would "help to boost trade, investment, productivity and wages." |
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