Global growth expands by 3.5 pct in 2017- OECD

PARIS, Sept 20 (KUNA) -- The global economy is picking up pace this year and should attain Gross Domestic Product (GDP) expansion of 3.5 percent followed by an expected rise of 3.7 percent in 2018, the Organization for Economic Cooperation and Development (OECD) said Wednesday.
In its "Economic Outlook" report, it noted that the forecasts were "modest improvements" on earlier predictions the OECD made in June 2017.
The report added that all major advanced economies "remain on pace", while warning powerful global economies of complacency, saying they must continue both fiscal and structural reforms which will further improve performance.
"The short-term outlook is more broad-based and the upturn is promising, but there is no room for complacency," the OECD said. Growth in the US is forecast to be on track at an estimated 2.1 percent this year and 2.4 percent in 2018, buoyed by strong consumer spending and business investment, with proposed fiscal changes causing an extra boost in 2018, the report said.
In the Euro area, growth is predicted to reach 2.1 percent in 2017, before sliding to 1.9 percent the following year, the report showed.
The uptick in 2017 is being driven by core European economies like Germany, where GDP is forecast to be 2.2 percent but will ease to 2.1 percent in 2018. Meanwhile, French GDP will expand by 1.7 percent this year and by 1.6 percent in 2018, according to the projections.
On Britain's GDP, which is forecast to grow by 1.6 percent in 2017, it is expected to slump to 1.0 percent the following year due to weaker productivity and wage growth.
Japan's economic growth is put at an estimated at 1.6 percent for 2017, but will reduce to 1.2 percent in 2018 due to low wage growth and fiscal consolidation, the OECD report remarked. It pointed out that Canada will prove a leading growth area this year, with GDP rising by 3.2 percent, followed by 2.8 percent in 2018. The report also indicated that "growth in the major emerging market economies has improved overall, although growth remains subdued in a number of oil-exporting economies." Meanwhile, China is expected to register GDP expansion of 6.8 percent in 2017 and 6.6 percent in 2018, while India's growth is forecast to reach 7.2 percent this year and 6.7 percent in 2018.
The report stated that Russia is benefitting from higher oil prices and should have growth of 2 percent for the next two years.
The OECD renewed calls on policy-makers to boost fiscal and structural support for growth and wagers, while also making better use of taxes and spending "to achieve more inclusive growth." It also highlighted the need to undertake structural reforms "to boost productivity, wages and skills." (end) jk.nam