The global economy should be growing at a much faster pace, the chief economist of the Organization for Economic Co-operation and Development (OECD) warned on Sunday, as world leaders agreed on hundreds of measures they hope will boost expansion.
“As the emerging markets become a greater share of the global economy, we really ought to be seeing the global economy growing at 4 or more percent, so the tone is dour,” said OECD Chief Economist Catherine Mann, speaking to CNBC at the G-20 summit in Brisbane over the weekend
Growth of 4 percent is well behind the group’s projected global gross domestic product (GDP) of 3.3 percent for this year. In its latest Economic Outlook, published earlier this month, the OECD warned of “major risks on the horizon” for the world’s economy, such as further market volatility, high levels of debt and a stagnation in the euro zone recovery.
Mann’s comments come as world leaders at the G-20 agreed on measures they said will equate to 2.1 percent new growth, inject $2 trillion into the world economy and create millions of jobs. The Paris-based OECD has previous outlined a target of adding around 2 percentage points to global gross domestic product (GDP) by 2018, relative to the 2013 level.