dglobalnews.com OECD Economic Outlook predicts 2.8% GDP growth for Korea next year
Published: Thu, June 08, 2017
Research | By Kayla Price

OECD Economic Outlook predicts 2.8% GDP growth for Korea next year

The OECD raised Turkey's growth forecast for the year to 3.4 percent, up from 3.3 percent. By contrast, it lowered its forecast for the USA economy, and now expects growth this year of 2.1%, down from 2.4% in March.

The Paris-based economic think tank released a report Wednesday saying there should be further tightening of macro-prudential measures undertaken previous year, echoing recent advice by the International Monetary Fund.

The world economy is projected to grow 3.5 percent this year, the Paris-based think tank said in its semi-annual Global Economic Outlook report.

For Japan, robust exports to other parts of Asia and the effects of fiscal stimulus at home will lead to stronger growth than previously estimated in 2017 and 2018, the OECD said in its report.

The OECD said the risks to the USA outlook remain sizeable, mainly the size and timing of the fiscal stimulus are uncertain.

The Organization for Economic Cooperation and Development, which brings together 35 developed countries, maintained its 2018 forecast for Poland at 3.1 percent.

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However, the OECD warns that major economies can not afford to be complacent.

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

While recovering trade and investment flows were supporting the improving economic outlook, Gurria said barriers in the form of protectionism and regulations needed to be lifted to ensure stronger growth.

The OECD also saw a potential for "swift snap-back" in USA long-term interest rates when the Federal Reserve decides to reduce the size of its balance sheet, especially if it comes at a time of rising policy rates.

Rob Donaldson, head of corporate finance at RSM, the accountancy firm, said: "We've seen a slowdown in domestic M&A activity in the first quarter of the year which may reflect a sense of unease about the future of the United Kingdom economy and the uncertainty resulting from Brexit".

The OECD also highlighted growing risks in housing markets, where prices in some countries have risen to levels that have in the past preceded busts.

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