OECD updates their economic forecasts for 2018, 2019
- 2018 growth forecast improved by 0.3% from November forecast
- 2019 global growth forecast also seen at 3.9% (similar increase)
- US growth seen at 2.9% (+0.4%*) in 2018 and 2.8% (+0.7%*) in 2019
- Euro-area growth seen at 2.3% (+0.2%*) in 2018 and 2.1% (+0.2%*) in 2019
- UK growth seen at 1.3% (+0.1%*) in 2018 and 1.1% (+0.1%*) in 2019
- Chinese growth seen at 6.7% (+0.1%*) in 2018 and 6.4% (-) in 2019
*compared with November forecasts
The OECD also sees tax cuts adding about 0.5% to 0.75% to US growth outlook over the next two years, according to acting chief economist Alvaro Perreira. He also says that a trade war could threaten the global economic rebound, and would be «fairly damaging».
Perreira also chips in with a forecast on the Fed’s rate hikes by saying that the OECD now expects four rate hikes this year compared to three previously.
Regarding the UK, he says that they view UK growth as trailing behind other G20 countries this year over Brexit uncertainty.