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Slower outlook
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The global economy is projected to grow at a slower pace this year than in 2015, with only a modest uptick expected in 2017, the OECD’s latest interim Economic Outlook warns. The Outlook warns that a low-growth trap has taken root, as poor growth expectations further depress trade, investment, productivity and wages.

“The marked slowdown in world trade underlines concerns about the robustness of the economy and the difficulties in exiting the low-growth trap,” said OECD Chief Economist Catherine L Mann. The OECD projects that the global economy will grow by 2.9% this year and 3.2% in 2017, which is well below long-run averages of around 3.75%. 

The small downgrade in the global outlook since June 2016 reflects downgrades in major advanced economies, notably the United Kingdom for 2017, offset by a gradual improvement in major emerging-market commodity producers.  Growth among the major advanced economies will be subdued.

More information here.

©OECD Observer September 2016