‘Act Now or Risk Another Deep Downturn,’ OECD Warns Policymakers

June 1, 2016 Share Print 0

Global policymakers have been warned by the Organisation for Economic Co-operation and Development (OECD) to “act now” to prevent “persistent and sluggish growth” and another economic downturn as it downgraded its global growth forecasts.

In the OECD’s latest economic outlook published on Wednesday, the organization said that global growth had “languished over the past eight years as OECD economies have struggled to average only 2 percent per year, and emerging markets have slowed, with some falling into deep recession.”

As such, it said that “the cycle of forecast optimism followed by disappointment” had caused it to downgrade its global growth forecast by some 0.3 percent for 2016 and 2017 since its projections in its last Outlook report in November. It now forecast that the global economy was set to grow by 3 percent in 2016 and “by only” 3.3 percent in 2017.

CNBC

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Craig Erlam

Senior Market Analyst - UK & EMEA at OANDA

Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.