By Benjamin Umuteme
Abuja
Global economic performance is still weaker than a decade ago and “remains below the pre-crisis period and that of past recoveries,” the Organisation for Economic Co-operation and Development has warned.
OECD’s latest Economic Outlook report released yesterday argued that the world economy has strengthened from previous years and will see slight improvements in growth rates in 2018.
Meanwhile, OECD Secretary-General Angel Gurria warned while “growth has picked up momentum and the short-term outlook is positive” that “there are still clear weaknesses and vulnerabilities”.
He added: “There is a need to focus structural and fiscal action on boosting long-term potential as monetary policy support is reduced.
“Countries should implement reform packages that catalyse the private sector to promote productivity, higher wages and more inclusive growth.”
“These numbers will grow by leaps and bounds,” Trump tweeted of the economy last month, but the OECD analysis actually shows US growth hitting 2.5% by 2018 but then dropping again to 2.1% the year after that.
The survey Germany is forecast to grow by 2.5% in 2017, 2.4% in 2018 and a 2.1% in 2019, while Japan is projected to grow at a rate slightly below earlier forecasts at 1.5% for 2017, 1% in 2018 as “fiscal consolidation resumes”.
China and India are projected to see the biggest growths at 6.8% and 6.7% in 2017.
India’s growth would pick up to a 7.4% rate in 2019 thanks to the reforms that are expected to boost investment, productivity and growth.
The report also said the UK economy will continue to shrink until at least 2019.
