OECD Says Global Growth 'Better But Not Good Enough

OECD Says Global Growth 'Better But Not Good Enough

The latest forecast is a marginal improvement on OECD's March forecast which put forward a 3.3% global growth rate.

The OECD's report comes in the wake of a warning from the Fiscal Advisory Council here about the risk to the economy of another housing boom.

It also warned that weaker growth could drive the unemployment rate above 5%.

South Korea's economy is expected to grow 2.6 percent this year, a Paris-based worldwide organization forecast Wednesday, unchanged from its earlier outlook amid improving exports and consumer sentiment.

The OECD also saw a potential for "swift snap-back" in US long-term interest rates when the Federal Reserve decides to reduce the size of its balance sheet, especially if it comes at a time of rising policy rates. Business investment is projected to contract amid the large uncertainty and because of lower corporate margins.

"In the medium term, we foresee growth of 5 percent or more with reforms".

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Global growth is set to improve this year with the world economy likely to expand at the fastest pace in six years and the momentum is expected to continue, but more efforts are needed to ensure that benefits of such expansion and globalization are more widely shared, the Organisation for Economic Co-operation and Development said on Wednesday.

Study suggests hung United Kingdom parliament
A hung parliament occurs when no party has won enough seats in a general election to have a majority in the House of Commons. Sterling showed little reaction to the poll, steadying against the dollar after plunging around 2 cents last week.

It also noted that despite a sizeable reduction over the past years, non-performing loans still accounted for around 17 per cent of total outstanding loans, and a majority of them were property-related.

Sterling's slump since the Brexit vote has bumped up the cost of living as manufacturers and retailers pass down rising import prices to consumers.

Inflation climbed to 2.7% in April - its highest level for almost four years.

The Bank of England said last month that its expects inflation to peak at 3 per cent later this year.

It also said that country's jobless rate in 2017 would increase to 10.8 percent from 10.7 percent in its previous forecast in January.

This is slightly lower than the World Bank prediction, which came out yesterday and forecast the United Kingdom economy would grow 1.7% this year.

It comes amid Brexit uncertainty, which is seeing many companies put investment decisions on hold, and follows the pound's slump since the European Union referendum.

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