Published: Wed, September 20, 2017
Business | By Max Garcia

OECD revises up Japan's 2018 growth forecast to 1.2 percent

OECD revises up Japan's 2018 growth forecast to 1.2 percent

China is now predicted to grow 6.8% in 2017 and 6.6% in 2018, both up two basis points from prior estimates, as the OECD's world growth forecast was kept at 3.5% for this year but hiked to 3.7% from 3.6% for 2018.

Paris, Sep 20 The rebound in global growth is not yet secure, the OECD warned today, with weak investment by businesses and slow growth in trade and wages raising doubts whether the current momentum will be sustained.

The OECD raised its growth forecast for the eurozone this year by three tenths of a point to 2.1 per cent.

Despite unemployment falling to below 4.5pc the think-tank claims weak levels of productivity and wage growth has led it to foresee a slowing of the United Kingdom economy in 2018.

Russian Federation is rebounding from a recession with higher oil prices and lower interest rates providing a near-term boost to growth, which is projected at around 2% this year and next, while in Brazil, monetary easing is helping the gradual recovery and the strong decline in inflation is supporting consumer confidence. Consumer spending and business investment are strong, while wage growth has yet to take off, it said.

The forecasts for India were cut significantly, with growth this year now seen at 6.7 per cent, down 0.6 point from the forecast the OECD made in June.

The projection for 2017 was left unchanged, while the outlook for 2018 was revised up from 3.6 percent.

The OECD puts Britain's projected economic growth for 2018 at 1.0 percent, down 0.6 point from the previous year, due to uncertainties over its planned exit from the European Union. The outlook for 2018 was similarly raised, to 6.6 per cent. It calls for better use of tax and spending policies to achieve more inclusive growth and says increased structural reform efforts will be needed across all countries to boost productivity, wages and skills.

Like this: