The Paris-based thinktank has released a warning that global growth is threatened
by the impact of China’s slowdown on world trade, but has also raised
its forecast for U.S. growth.
It also called upon richer countries to bolster investment while keeping monetary policy loose. The thinktank expects global economic growth to gain momentum but in its twice-yearly outlook it highlights risks from emerging markets and weak trade.
OECD Secretary-General Angel Gurría said when presenting the outlook:
"The slowdown in global trade and the continuing weakness in investment are deeply concerning. Robust trade and investment and stronger global growth should go hand in hand."
The thinktank elevated its forecast for economic growth in the group
of 34 OECD countries this year to 2.0% from 1.9% in June’s outlook, when
it had highlighted a sharp dip in U.S. growth at the beginning of 2015.
For 2016, it has trimmed the forecast for OECD countries’ growth to 2.2% from 2.5%.
The OECD left its estimates for the UK little changed with growth of 2.4% in 2015 and 2016, compared with a projection for 2016 growth of 2.3% made in June. The OECD said the U.K. economic growth was expected to keep "at a robust pace over the coming two years, driven by domestic demand."
The world's largest economy, of the U.S., is now seen expanding 2.4% this year and 2.5% in 2016, compared with June’s forecasts of 2.0% and 2.8%.