Arab Today, arab today oecd cheap money oil fuel improvement in global growth outlook
Last Updated : GMT 02:33:04
Arab Today, arab today
Arab Today, arab today

OECD: Cheap money, oil fuel improvement in global growth outlook

Arab Today, arab today

Arab Today, arab today OECD: Cheap money, oil fuel improvement in global growth outlook

OECD raised its forecast for global growth
Paris - AFP

Cheap oil and money have lifted the eurozone out of lethargy, the OECD said Wednesday, but it warned investment was lacking to achieve rapid world growth and expressed concerns about China.
"Growth prospects in the major economies look slightly better" than when it made its previous forecasts in November, the OECD said.
It raised its forecast for global growth this year by a tenth of a percentage point to 4.0 percent and its outlook for 2016 by two tenths of a percentage point to 4.3 percent.
Nevertheless, the OECD noted that "the near-term outlook remains for moderate, rather than rapid, world GDP growth," pointing out that "real investment remains sluggish, and labour is not yet fully engaged."
The OECD, a policy analysis body made up of 34 countries with advanced economies, said the effects of "lower oil prices and the effects of monetary policy easing are driving the overall improvement in the outlook."
Nowhere was this more evident than in the eurozone, where the OECD raised its 2015 growth forecast by 0.3 points to 1.4 percent this year and by the same magnitude to 2.0 percent in 2016.
The European Central Bank's launching of a 1.14 euro ($1.2 billion) bond buying programme this month was the main reason for the improvement in the outlook in the eurozone, it said.
The OECD noted that monetary conditions have been eased in recent months in countries accounting for roughly half of the global economy, which it said has helped improve financial conditions.
With the Federal Reserve meeting on Wednesday and economists on the lookout for signals that it could begin raising interest rates within months, the OECD said it should wait.
"Lower oil prices and the appreciation of the dollar make it appropriate for the Federal Reserve to wait longer to raise policy interest rates," said the OECD.
The dollar has been quickly rising in value as the Fed nears raising interest rates and the ECB has eased monetary policy, which could slow US exports and growth.
The OECD held its forecasts for US growth steady at 3.1 percent this year and 3.0 percent in 2016.
- India heads the pack -
Meanwhile growth is "getting back on track" in Japan, said the OECD, which lifted its 2015 forecast by 0.2 points to 1.0 percent growth and the 2016 outlook by 0.4 points to 1.4 percent.
While lower fuel prices mean it will take longer to return to safe inflation levels, it will support demand, said the OECD as it pointed to higher wages as being a key part to a sustainable recovery.
"A key requirement for reaching a new equilibrium with satisfactory demand growth and inflation close to the official target is a significant rise in average nominal wages, making the upcoming annual wage bargaining round a critical period," said the OECD, which also urged further structural reforms.
The OECD said China's growth is slowing to the government's target of 7.0 percent, as it trimmed its forecast by 0.1 point to that level while the 2016 outlook was left untouched.
"Policymakers face a significant challenge between meeting growth targets while also pursuing the stated goal of rebalancing the economy toward domestic demand and at the same time ensuring that financial risks are managed," it warned.
Meanwhile the OECD now expects India to overtake China as the fastest-growing major economy, hiking its forecast by 1.7 points to 7.7 percent growth in 2015, although part of the change was due to new data. The 2016 forecast was raised to 8.0 percent.
Commodity exporters, like Canada and Brazil, saw their growth outlooks cut as oil prices have fallen.
Brazil's forecast was chopped by 2.0 points to a contraction of 0.5 percent this year, as a tight monetary policy has also crimped growth.
Despite growing risks of ultra-low interest rates laying the groundwork for a new crisis, the OECD said central banks should continue their easy money policies although governments need to act to ensure the recoveries are balanced and create jobs.
"...the failure of monetary easing alone to spur strong growth in fixed investment, with instead booms in financial investments, imply that policy makers cannot rely exclusively on monetary policy," the OECD said.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today oecd cheap money oil fuel improvement in global growth outlook Arab Today, arab today oecd cheap money oil fuel improvement in global growth outlook

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today oecd cheap money oil fuel improvement in global growth outlook Arab Today, arab today oecd cheap money oil fuel improvement in global growth outlook

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today What's the reason and what you can do

GMT 05:44 2017 Sunday ,22 October

What's the reason and what you can do
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Syrian children die of hunger

GMT 19:25 2017 Sunday ,22 October

Syrian children die of hunger
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 10:18 2017 Saturday ,21 October

How to do open-heart surgery

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday