OECD expects Greek growth at just 1.4 pct in 2017

Andrew Cummings
November 29, 2017

The think tank said that the United Kingdom is among countries whose boom in household debt should be watched and suggested the introduction of debt-to-income caps that limit borrowing in relation to earnings.

The global economy is set to grow 3.6 percent this year before nudging up to 3.7 percent in 2018, the best performance since 2011, the Paris-based Organisation for Economic Cooperation and Development (OECD) said Tuesday.

The OECD expects global growth to strengthen to 3.6 per cent this year, up from 3.1 per cent in 2016.

"Growth has picked up momentum and the short-term outlook is positive, but there are still clear weaknesses and vulnerabilities", said OECD Secretary-General Angel Gurria. The Korean government and the Bank of Korea both have a growth forecast of three percent for this year, with the International Monetary Fund recently upwardly revising its economic outlook for the country to three.two percent.

"Economic growth is estimated to have exceeded six percent in 2017, driven by strong fiscal stimulus and an export market recovery", the OECD said.

As noted in the country's medium-term economic program announced on September 27, the government is targeting growth of 5.5 percent this year as well as through to 2020.

There is an even greater distance for 2019, with the OECD anticipating growth at just 2 percent, against an official forecast for 2.6 percent.

"The growth slowdown is expected to continue through 2018, due to continuing uncertainty over the outcome of negotiations around the decision to leave the European Union and the impact of higher inflation on household purchasing power", it said, adding that there would be a "moderate" rise in the UK's current 4.3 per cent unemployment rate.

For 2019, the group of leading economies forecasts "a tempering of growth rather than continued strengthening".

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