AS per OECD latest outlook the global economy is lightly to continue expanding at a modest rate over
the coming two years, but policymakers must ensure that instability in financial
markets and underlying fragility in some major economies are not allowed to
derail growth.
"The recovery is real, but at a slow speed, and there may be turbulence on
the horizon," OECD Secretary-General Angel Gurría said during the Outlook launch
in Paris. "There is a risk of another bout of brinkmanship in the US, and there
is also a risk that tapering of asset purchases by the US Federal Reserve could
bring a renewed bout of instability. The exit from non-conventional monetary
policy will be challenging, but so will action to prevent another flare-up
in the euro area and to ensure that Japan’s growth prospects and fiscal targets
are achieved," Mr Gurría said.
GDP growth across the 34-member OECD is projected to accelerate from this
year’s 1.2% rate to a 2.3% rate in 2014 and a 2.7% rate in 2015, according
to the Outlook. The world economy, by contrast, will grow at a 2.7% rate this
year, before accelerating to a 3.6% rate in 2014 and 3.9% in 2015. The pace
of the global recovery is weaker than forecast last May, largely as a result
of the worsened outlook for some emerging economies.
Growth in the United States is projected at a 2.9% rate in 2014 and a 3.4%
rate in 2015. In Japan, GDP is expected to drop to a 1.5% growth rate in 2014
and a 1% rate in 2015. The euro area is expected to witness a gradual recovery,
with growth of 1% in 2014 and 1.6% in 2015.
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