OECD Says Secular Stagnation to Dampen Global Growth

The world economy appears to be suffering a slowdown in growth that will stretch through the rest of the year and 2016, according to a report by the Organisation for Economic Cooperation & Development.

Heightening concerns that a period of “secular stagnation” is about to dampen the prospects for global growth, the Paris-based thinktank said China’s economy was flagging and recent stock market turmoil had exposed the fragility of many emerging market economies.

But the steady progress made by some of the largest developed economies, including Britain, the US and Germany was maintaining the global recovery.

Nevertheless, the OECD described the outlook for the next couple of years as one characterised by “puzzles and uncertainties” as the growth prospects for Japan and the uneven pace of growth among eurozone countries revealed a mixed and confusing picture.

It said: “The US recovery remains solid, but there are puzzles around developments in other major economies. Growth in the euro area is improving, but not as fast as might be expected.

“Erratic data in Japan raise questions about the robustness of the recovery there. And growth dynamics in China are difficult to assess, with conflicting signals coming from different indicators.”

via The Guardian

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza