• Facebook
  • LinkedIn
  • Twitter

maltawinds.comLogo

The Economy's Voice

Menu

Skip to content
  • Home
  • About
  • Local News
  • International News
  • Opinion
  • Demia on Sundays
  • Demeter
  • Business
  • Satire on Sunday
  • WHO says pandemic has caused more ‘mass trauma’ than WWII
  • Thai households now allowed to grow six cannabis plants a year

OECD Says Global Economy to Grow by 3.8 Percent in 2018

Posted by Vento on 5th June 2018 in International News

The following post by Mateo Jarrin was published on 01 June on http://www.taxlinked.net  and can be viewed in full here

In its recently released economic analysis for 2018, the OECD has revealed that it expects the global economy to grow by close to 3.8% in 2018 and 3.9% the following year.

As reported by The Financial Times, this forecast “stems from a recent rebound in investment that has helped cut unemployment across the OECD to its lowest level since 1980, igniting wage growth and leading to nascent labour shortages in Germany, Japan, the US and elsewhere.”

Furthermore, the OECD’s chief economist, Alvaro Pereira, said, “Contrary to previous periods, 4 per cent world growth is not due to rising productivity gains or sweeping structural changes. This time around the stronger economy is largely due to monetary and fiscal policy support.”

Additionally, the unemployment rate among OECD member countries will fall below 5 percent in 2019, its lowest level in almost forty years. Such low unemployment rates will be reflected in higher wages for employees across the globe.

OECD Warns About Potential Risks for 2018

The OECD also warned that the world economy might still face several risks throughout the remainder of the year.

Pereira singled out the United States, saying its expansionary fiscal policy has come “a bit late in the cycle” and, hence, might lead to a hike in inflation and a 180-degree turn at some point.

Furthermore, as explained by the Financial Times, the report suggests that the poor first quarter numbers were the result of strikes, a cold winter, postponed investments due to “fears of disruption to trade,” and high oil prices.

The report also warns that rising US interest rates and a stronger dollar could put added pressure on the developing world, while a looming political crisis and growing debt in Italy might hinder the Eurozone.

Last but not least, according to The Guardian’s Phillip Inman, the OECD believes that “the rise of tit-for-tat protectionist trade barriers [and] the return of volatile financial markets” will negatively impact the global economy’s performance moving forward.

The OECD’s Recommendations for Improved Economic Performance

The report also lays out a series of recommendations for governments to boost their countries’ economic performances.

As highlighted by The Guardian, the study “calls for governments to reignite economic reforms while low interest rates and strong global growth persist,” and recommends that jurisdictions “improve tax and spending policies to boost investment and raise living standards across the income distribution.”

Furthermore, states should ramp up “spending on digital and physical infrastructure, enhance research and development collaboration between universities and industry, reduce barriers to entry in professional services sectors and cut red tape.

According to the OECD’s Secretary General José Angel Gurría, “Policymakers need to put greater focus on structural policies to boost skills and to improve productivity to achieve strong, sustainable and inclusive growth.”

The chair of the OECD’s Business and Industry Advisory Committee (BIAC), Phil O’Reilly agreed, telling CNBC in an interview that the best way to move economies forward is via “structural reforms and policies aimed at boosting skills, increasing workforce productivity and investing in innovation.”

More specifically, O’Reilly said, “Fiscal stimulus is only good for a little while… The idea of high debt is obviously an economic destabilizer. The answer is solid economic growth that goes beyond stimulus-driven growth and that’s based on the fundamentals.”

O’Reilly then urged governments to focus on “skills advancement, digital inclusion and investment procedures.”

As reported by Natasha Turak for CNBC, O’Reilly called for greater “digital infrastructure and digital inclusion,” which “will be core to providing those in rural and underprivileged areas access to better tools for education, financial literacy, and business opportunities.”

Finally, “improved and simplified investment procedures, on both federal and local levels, will boost cross-border commercial flows and strengthen private sector job creation,” according to O’Reilly.

 

Posted in International News | Tagged economy, global economy, growth, OECD, performance

About the Author

Avatar

Vento

Related Posts

WHO says pandemic has caused more ‘mass trauma’ than WWII→

UK economy to regain pre-pandemic size earlier than forecast: Sunak→

UK: PM Boris Johnson to plot path out of lockdown on Monday→

Britain to offer all adults a COVID-19 vaccine by end of July→

advertisement
  • Posts
  • Comments
  • Tag Cloud
  • WHO says pandemic has caused more ‘mass trauma’ than WWII

    6th March 2021 / Vento
  • Thai households now allowed to grow six cannabis plants a year

    6th March 2021 / Vento
  • New Yorkers cheer as The Big Apple reopens its movie theatres

    6th March 2021 / Vento
  • BOV suspends fees on dormant accounts and minimum balance

    6th March 2021 / Vento
  • Back to square one: Milan locked in Covid’s grasp

    6th March 2021 / Vento
  • Avatar
    Joseph Tabone on In his final days as POTUS, Trump…Trump will be voted out…
  • Avatar
    Joseph Tabone on Moviment Graffitti in strong opposition to outrageous…Why the objections? If the…
  • Avatar
    Joseph Gatt on The government is committed to supporting Malta’s…Both the Business Start (B…
  • Avatar
    Hindi Lyrics on Nurse death toll from COVID-19 hits the…I have been looking for…
  • Avatar
    Mehfooz Roy on US Presidential Elections: Biden leads polls in…You really think sleepy Joe…
aviation banking Bitcoin blockchain Boris Johnson BOV brexit business China climate change COVID-19 cryptocurrency Donald Trump ECB economy Education environment EU euro area Europe European Commission European Parliament European Union Eurostat eurozone France Germany Government Infrastructure Malta investment Italy lockdown Malta maritime pandemic politics recovery restrictions technology travel UK United States US vaccine WHO

News Calendar

June 2018
M T W T F S S
 123
45678910
11121314151617
18192021222324
252627282930  
« May   Jul »
Footer logo
  • Facebook
  • LinkedIn
  • Twitter
 




 
 
 

Copyright © 2016 MaltaWinds.com

Menu

  • About
  • Home