The Organization for Economic Cooperation and Development confirmed on Tuesday global economic growth forecasts for 2017-2018 after an increase of 3% in 2016. The estimation of the world GDP growth in 2017 is kept at the level of 3.3%. In 2018 growth is expected to increase to 3.6% - the highest since 2011.
OECD notes the weakness of investment and foreign trade, calling protectionism the main threat to projections. At the same time, the organization's experts expect a modest increase in the growth rate of the world economy due to a more active use of fiscal policy measures. Among the risks to the world economy, the OECD also indicates a high level of debt burden in China.
However, the organization for the second consecutive time improved the forecasts of the growth of the British economy for 2017 due to the strong incentives of the Bank of England.
The OECD expects that the economic policies of U.S. President Donald Trump, including extensive investments in infrastructure, will increase GDP growth from 1.6% last year to 2.4% in 2017.
In the euro area GDP is expected to grow by 1.6% in both the current and next year.