OECD: Better But Not Good Enough
- Global growth is expected to pick-up in the next two years.
- Gains need to be shared across the OECD, the report highlights.
- With the markets looking ahead towards the ECB meeting, the UK General election and the ex-FBI director Comey’s testimony, check out the DailyFX Webinar Calendar for our live, in-depth coverage and analysis of these key events.
The global economy is forecast to grow to a six-year high, according to the latest report from the OECD. Global growth is expected to hit 3.5% in 2017 and to 3.6% in 2018.
Among the major advanced economies, the recovery will continue in the US, which is projected to grow by 2.1% in 2017 and 2.4% in 2018. The Euro-Zone will see steady growth at 1.8% in 2017 and 2018. In Japan, growth is projected at 1.4% in 2017 and 1% in 2018. The 35-country OECD area is projected to grow by 2.1% in both 2017 and 2018, according to the Outlook.
China is expected to see growth of 6.6% in 2017 and 6.4% in 2018, while India is expected to grow sharply, by 7.3% this year and 7.7% in 2018.
According to OECD Secretary-General Angel Gurria, the modest expansion will not be able to sustain strong gains in living standards across the OECD, adding that: “We need a more inclusive rules-based globalization that works for all entered on people’s well-being.”
The US Dollar barely reacted to the latest outlook and remains mired near a seven-month low as US bond rates continue to edge lower as investors question US President Donald Trump’s fiscal boost. Financial markets are also on hold Wednesday as the UK election draws ever closer, while former FBI director James Comey’s Congressional testimony is expected Thursday.
Chart: USD Index Weekly Timeframe (July 2015 – June 7, 2017)
For the latest update on UK voting intentions, see here
--- Written by Nick Cawley, Analyst
To contact Nick, email him at firstname.lastname@example.org
Don't trade FX but want to learn more? Read the DailyFX Trading Guides
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.