Organisation for Economic Cooperation and Development revised the projections of global economic growth, Global growth is projected to strengthen in the course of 2015 and 2016, but will remain modest relative to the pre-crisis period," the Organisation for Economic Cooperation and Development said. the world economy would grow at a rate of 3.1 percent this year, down from the 4.0 percent increase it projected in March.
For next year 2016 and 2017 economic still gloomy, but slowly turning recovery, The growth forecast for next year has been revised downward half a percentage point, from 4.3 to 3.8 percent, with an expectation that the world economy "will strengthen gradually to approach its past (pre-crisis) average pace by late 2016."
As reported from The OECD, a policy analysis body grouping 34 advanced economies, slashed its outlook for the United States from 3.1 and 3.0 percent to 2.0 and 2.8 percent for this year and next year.
The stronger safe haven currency US dollar and bad climate in North American winter bring pre-financial crisis get started "Activity should regain steam, with aggregate demand propelled by continued employment gains, wealth effects from rising asset prices, and the boost to purchasing power from lower oil prices."
The largest world trade country China will grow more slowly than the OECD predicted in March, by two-tenths of a percentage point lower in both years, at 6.8 percent and 6.7 percent in 2015 and 2016.
"Consumption will remain robust" in China, where growth will also be spurred by stepped-up infrastructure investment, it said. The OECD said that overall, "the economic recovery from the global financial and economic crisis that broke out in 2008 has been unusually weak."
Global economic slow down the knock-on effects have included continuing job insecurity, sluggish development in emerging economies and "rising inequality nearly everywhere", the report said.
Meanwhile, Its outlook for the eurozone was unchanged for this year and slightly rosier for 2016, at 2.1 percent from 2.0 percent thanks to lower oil prices, the weak euro, better financial conditions and fresh stimulus spending.
But unemployment in the eurozone will remain stubborn, declining to a still painful 10.25 percent by the end of next year, the OECD said.
"By and large, firms have been unwilling to spend on plant, equipment, technology and services as vigorously as they have done in previous cyclical recoveries," it said.
"Moreover, many governments postponed infrastructure investments as part of fiscal consolidation," it said, with negative effects on employment and wages and therefore consumption.
"On the supply side, sluggish investment has undermined the rate of growth of potential output – the capacity of economies to increase living standards, make good on future obligations to citizens, and repay debt,"
Among global risk factors it cited were new drops in oil prices; failure to reach a "satisfactory" deal between Greece and its creditors; a "hard landing" in China; and a "disorderly exit" from Washington's zero interest rate policy.
The most ideal oil prices expected to "stabilise above current levels" but well below the $110 per barrel average of the three years preceding last year's precipitous drop.
If sanctions are truly lifted against Iran, the OECD said the key oil producer could return to full output quickly, prompting others to "lift their supply as well in an attempt to preserve market share."
Source : Organisation for Economic Cooperation and Development
For next year 2016 and 2017 economic still gloomy, but slowly turning recovery, The growth forecast for next year has been revised downward half a percentage point, from 4.3 to 3.8 percent, with an expectation that the world economy "will strengthen gradually to approach its past (pre-crisis) average pace by late 2016."
As reported from The OECD, a policy analysis body grouping 34 advanced economies, slashed its outlook for the United States from 3.1 and 3.0 percent to 2.0 and 2.8 percent for this year and next year.
The stronger safe haven currency US dollar and bad climate in North American winter bring pre-financial crisis get started "Activity should regain steam, with aggregate demand propelled by continued employment gains, wealth effects from rising asset prices, and the boost to purchasing power from lower oil prices."
The largest world trade country China will grow more slowly than the OECD predicted in March, by two-tenths of a percentage point lower in both years, at 6.8 percent and 6.7 percent in 2015 and 2016.
"Consumption will remain robust" in China, where growth will also be spurred by stepped-up infrastructure investment, it said. The OECD said that overall, "the economic recovery from the global financial and economic crisis that broke out in 2008 has been unusually weak."
Global economic slow down the knock-on effects have included continuing job insecurity, sluggish development in emerging economies and "rising inequality nearly everywhere", the report said.
Meanwhile, Its outlook for the eurozone was unchanged for this year and slightly rosier for 2016, at 2.1 percent from 2.0 percent thanks to lower oil prices, the weak euro, better financial conditions and fresh stimulus spending.
But unemployment in the eurozone will remain stubborn, declining to a still painful 10.25 percent by the end of next year, the OECD said.
"By and large, firms have been unwilling to spend on plant, equipment, technology and services as vigorously as they have done in previous cyclical recoveries," it said.
"Moreover, many governments postponed infrastructure investments as part of fiscal consolidation," it said, with negative effects on employment and wages and therefore consumption.
"On the supply side, sluggish investment has undermined the rate of growth of potential output – the capacity of economies to increase living standards, make good on future obligations to citizens, and repay debt,"
Among global risk factors it cited were new drops in oil prices; failure to reach a "satisfactory" deal between Greece and its creditors; a "hard landing" in China; and a "disorderly exit" from Washington's zero interest rate policy.
The most ideal oil prices expected to "stabilise above current levels" but well below the $110 per barrel average of the three years preceding last year's precipitous drop.
If sanctions are truly lifted against Iran, the OECD said the key oil producer could return to full output quickly, prompting others to "lift their supply as well in an attempt to preserve market share."
Source : Organisation for Economic Cooperation and Development
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