Source: Tanjug | Wednesday, 14.03.2018.| 11:28
Highlight an article Print out the news

OECD upgrades world economy growth forecast to 3.9% – Highest rate since 2011

Illustration (Photo: Bloomua/
The global economy will see its strongest growth in seven years in 2018 thanks to a rebound in trade and investment, the OECD said on Tuesday.

The organization also warned that a trade war could threaten the improved outlook.

– The global economy will grow by 3.9%, up from the previous estimates in November of 3.7% for 2018 and 3.6% for 2019 – says the latest OECD report, covering all G20 economies.

The projected growth rate of 3.9% is the highest one since 2011.

Rebounding global business investment would keep global trade growth at about 5% this year, the OECD forecast.

However, it said the global economy was vulnerable to an eruption of trade tensions after the Trump administration slapped import tariffs on steel and aluminum.

– This could obviously threaten the recovery. Certainly we believe this is a significant risk, so we hope that it doesn’t materialize because it would be fairly damaging – acting OECD chief economist Alvaro Pereira told Reuters.

The OECD forecast the U.S. economy would grow 2.9% this year and 2.8% in 2019, with tax cuts adding 0.5-0.75 percentage points to the outlook in both years.

Euro zone will grow 2.3% this year and 2.1% in 2019, up from the forecast of 2.1% and 1.9% respectively.

Britain is lagging with a growth of only 1.3% this year, although up from a November forecast of 1.2%.

The forecast for Germany is 2.4% in 2018 and 2.2% in 2019, whereas the French economy should grow by 2.2% and 1.9% respectively.

OECD analysts forecast that China's GDP will grow by 6.7% this year and by 6.4% in 2019. They also project that Russia's economy will drop by 1.8% in 2018 and grow by 1.5% in 2019.
Only logged-in users can comment.
Follow the news, tenders, grants, legal regulations and reports on our portal.
Testiraj besplatno!
Register for our daily business bulletin, which is sent to your email address at the end of each work day.
Full information is available only to commercial users-subscribers and it is necessary to log in.
Test for free!
Testiraj besplatno!
Full information is available to commercial users-subscribers only.
Testiraj besplatno!

Log in to view complete information:
Forgot your password? Click here HERE
For free test use, click HERE