REUTERS
Achieving strong growth in the global economy remains elusive, with only a modest recovery in advanced economies and slower activity in emerging markets, according to the OECD’s latest Interim Economic Outlook.
The Organization for Economic Co-operation and Development (OECD) projects that the global economy will grow by 3% this year and 3.3% in 2017, which is well below long-run averages of around 3¾%, according to report.
This is also lower than would be expected during a recovery phase for advanced economies, and given the pace of growth that could be achieved by emerging economies in convergence mode, the OECD emphasized.
The downgrade in the global outlook since the previous Economic Outlook in November 2015 is broadly based, spread across both advanced and major emerging economies, with the largest impacts expected in the United States, the euro area and economies reliant on commodity exports, like Brazil and Canada.
Thus, the U.S. is projected to grow by 2% this year and by 2.2% in 2017, while Canadian growth is projected at 1.4% this year and 2.2% in 2017.
Japan is projected to grow by 0.8% in 2016 and 0.6% in 2017.
The euro area is projected to grow at a 1.4% rate in 2016 and a 1.7% pace in 2017, according to the report.
With China expected to continue rebalancing its economy from manufacturing to services, growth is forecast at 6.5% in 2016 and 6.2% in 2017. India will continue to grow robustly, by 7.4% in 2016 and 7.3% in 2017. By contrast, Brazil’s economy is experiencing a deep recession and is expected to shrink by 4% this year and only to begin to emerge from the downturn next year.