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World growth to pick up slightly: OECD

dpa logodpa 7/06/2017

The world economy is expected to pick up speed this year, the Organisation for Economic Cooperation and Development says.

Global economic growth is likely to pick up slightly this year and into 2018, the Organisation for Economic Cooperation and Development (OECD) says.

The organisation of 35 mainly industrialised countries predicted that growth in world gross domestic product (GDP) is set to rise from three per cent in 2016 to 3.5 per cent in 2017 and 3.6 per cent in 2018.

"While the pick-up is welcome, it would still leave global growth below past norms and below the pace needed to escape fully from the low-growth trap," the OECD noted.

The Paris-based group warned that while employment growth "has recovered relatively well in recent years," measures for hours worked and part-time jobs show that "the quality of work is more precarious."

In OECD member states, which include western and central European countries, North America, Korea, and Japan, overall growth of 2.1 per cent is predicted for 2017 and 2018.

"On a per capita basis, OECD GDP growth remains over a half percentage point weaker than in the two decades prior to the crisis" of 2008, the organisation noted.

The eurozone is lagging behind, with growth predicted to average about 1.75 per cent in both years.

"Accommodative monetary policy and a small fiscal easing of 0.25 per cent of GDP per annum in 2017 and 2018 will help to support area-wide activity, but still high unemployment, soft real wage growth and high non-performing loans constrain domestic demand growth in some (eurozone) countries," the OECD said.

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