OECD sees stronger world economy, rising tensions
According to the OECD’s Interim Economic Outlook released in March 2018, the pace of expansion over the 2018-19 period is expected to be faster than in 2017, as robust investment growth, an associated rebound in trade and higher employment drive an increasingly broad-based recovery. At the same time, tensions are appearing that could threaten strong and sustainable medium-term growth.
The OECD projects that the global economy will grow by 3.9 percent in both 2018 and 2019, with private investment and trade picking up on the back of strong business and household confidence. Inflation is set to rise slowly. The projections reflect slight improvements in the global economy since the previous Economic Outlook in November 2017, and cover all G20 economies.
The Outlook underlines the boost to short-term growth expected from new tax reductions and expected spending increases in the United States and expected fiscal stimulus in Germany, but also points out a number of financial sector risks and vulnerabilities, as well as those posed by a rise in protectionism.