OECD sees global economy strengthening

Tuesday, 28 November 2017 15:19:56 (GMT+3)   |   Istanbul
       

The world economy has strengthened, with monetary and fiscal stimulus underpinning a broad-based and synchronised  improvement in growth rates across most countries, according to the OECD’s latest Economic Outlook.

Annual growth of the world economy is projected to improve slightly  in 2018, but  remains below the pre-crisis period and that of past recoveries.

The OECD projects that the global economy will grow by 3.6 percent this year, 3.7 percent in 2018 and 3.6 percent in 2019. The projections reflect slight improvements in the global economy since the previous Interim Economic Outlook in September 2017, but also concerns about long-term momentum.

In Turkey, economic growth is estimated to have exceeded six percent in 2017, driven by strong fiscal stimulus and an export market recovery, and is projected to edge down but to stay between four percent and five percent in 2018 and 2019.

In the United States, growth is estimated at 2.2 percent in 2017, rising to 2.5 percent in 2018, then dropping back to 2.1 percent in 2019.

The euro area is projected to grow at a 2.4 percent rate in 2017 and a 2.1 percent pace in 2018 - upward revisions from previous projections driven by stronger growth in key European countries - before slowing to a 1.9 percent pace in 2019.

Growth in Japan is projected at 1.5 percent for 2017, which is slightly below the forecast in the September 2017 Interim Economic Outlook, and to remain close to one percent in 2018 and 2019 as fiscal consolidation resumes and the decline in the working-age population accelerates. 

Growth in China is projected at 6.8 percent in 2017, 6.6 percent in 2018, and 6.4 percent in 2019, partly reflecting the ongoing rebalancing in China’s growth model.

In India, growth is projected at 6.7 percent in 2017 and 7.0 percent in 2018, before picking up to a 7.4 percent rate in 2019, thanks to reforms that are expected to boost investment, productivity and growth.

Russia is rebounding from recession, and is projected to grow by 1.9 percent in 2017 and 2018 and 1.5 percent in 2019. Brazil is also expected to exit recession, with a 0.7 percent growth rate in 2017, 1.9 percent in 2018 and 2.3 percent in 2019.


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