OECD Economic Outlook: Stronger global economy, but risks loom large

OECD Economic Outlook: Stronger global economy, but risks loom large

As investors grapple with renewed jitters in global markets, a new analysis paints a fairly upbeat outlook for Australia of robust economic growth, more jobs, rising wages and a sound budget position.

In an economic outlook report released on Wednesday, the OECD said the country's economy will grow three percent for both this year and next year. Using OECD best practices, it will support countries in areas relating to economic competitiveness, entrepreneurship, trade, public administration, innovation, activating human capital, improving infrastructure and connectivity, increasing economic resistance, and green growth.

The Organisation for Economic Cooperation and Development (OECD) revised higher the UK GDP forecast but warned the brexit related uncertainties could play a spoilsport.

An worldwide economic watchdog says threatened new trade barriers and rising oil prices could hurt long-awaited global economic growth.

The overall OECD unemployment rate was seen falling to 5 percent by the end of next year, which would mark the lowest level since 1980 and set the stage for higher growth in workers' wages.

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In the Euro zone, the PIB is expected to increase 2.2 percent this year and 2.1 percent in 2019.

The growth of Slovenia's GDP is expected to slow down to 3.9% in 2019, which is nevertheless an upgrade compared to the OECD's previous forecast for Slovenia for next year (3.4%).

The world's Gross Domestic Product (GDP) is expected to grow 3.8 percent this year.

Nevertheless, oil prices, which have risen sharply in recent months, and worldwide trade, facing threats of higher barriers, pose risks to the outlook, the OECD reported.

On the other hand, the outlook highlights a range of risks to the current expansion. "Policies to promote entrepreneurship and raise productivity in SMES are also needed to sustain growth and reduce income inequality", it added.

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