OECD sees growth peaking
1 December, 2017
Global economic growth is set to peak at an eight-year high next year, as uninspiring investment and increasingly dangerous debt levels limit room for further improvement, the OECD said on 28 November. In its biannual Economic Outlook, the OECD said the global economy is on course to grow 3.6% this year, before reaching 3.7% next year, then ease back to 3.6% in 2019.
"Growth has picked up momentum and the short-term outlook is positive, but there are still clear weaknesses and vulnerabilities," said OECD Secretary-General Angel Gurria. He urged countries to implement reform packages that catalyse the private sector to promote productivity, higher wages and more inclusive growth.
In the United States, growth was estimated at 2.2% this year, rising to 2.5% in 2018, then dropping back to 2.1% in 2019, the OECD said. The euro area was expected to grow at a pace of 2.4% this year and a 2.1% pace in 2018, before slowing to a 1.9% in 2019. The OECD forecast 6.8% growth in China this year, 6.6% in 2018, and 6.4% in 2019, partly reflecting the ongoing rebalancing in China's growth model. In India, growth is projected at 6.7% in 2017 and 7.0% in 2018, before picking up to a 7.4% rate in 2019, thanks to reforms that are expected to boost investment, productivity and growth, the agency said.