Economy

OECD: Investment needed to sustain global growth

OECD: Investment needed to sustain global growth

"Economic growth is estimated to have exceeded 6 percent in 2017, driven by strong fiscal stimulus and an export market recovery", the OECD said in a note of its latest outlook on Turkey, which was released on November 28.

The increase in the OECD's growth outlook for Turkey followed the International Monetary Fund upping Turkey's 2017 growth forecast 2.6 percentage points on October 10, the World Bank raising its forecast 0.4 percentage points on October 19, the European Bank for Reconstruction and Development (EBRD) lifting it by 2.6 percentage points on November 7 and the EU increasing by 2.3 percent on November 11.

"As fiscal stimulus is scheduled to be withdrawn in 2018, against the backdrop of continuing regional and domestic uncertainties, strengthening business and household sentiment will be essential for maintaining growth momentum", the OECD said. It also raised its forecast for 2018 growth to 3.6%, up from 3.4%.

In its biannual Economic Outlook, the OECD said the global economy will grow 3.6 percent this year, which is faster than the 3.5 percent projected in September.

Gurria urged countries to implement reform packages that catalyze the private sector to promote productivity, higher wages and more inclusive growth.

The Paris-based think tank also said that the United Kingdom economy will lag behind other major economies due to the Brexit uncertainties.

Korea last registered the second-biggest economic expansion among the OECD nations in the first quarter of 2010, when its gross domestic product added 2.2 percent on-quarter. It left its forecast for next year at 1.2 percent and estimated growth would fall to 1.0 percent in 2019.

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For Germany, the OECD predicts the country's GDP growth rate to ease a little in the short-term but overall, offers an upbeat assessment of the German economic situation.

Britain's economy is already growing more slowly than numerous world's rich nations, due to the impact of higher inflation since the referendum decision to leave the European Union and uncertainty about the outcome of the Brexit talks.

The global GDP is forecast to expand 3.6 percent in 2019.

Growth in Japan was projected at 1.5 percent for 2017 and to remain close to 1 percent in 2018 and 2019 as fiscal consolidation resumes and the decline in the working-age population accelerates.

In India, growth is projected at 6.7 percent in 2017 and 7.0 percent in 2018, before picking up to a 7.4 percent rate in 2019, thanks to reforms that are expected to boost investment, productivity and growth, the agency said.

The outlook also predicts global growth to taper off slightly to 3.6 percent in 2019, stating that "the foundations for higher potential output and more resilient and inclusive growth do not yet appear to be in place".