The global economy improved in 2017 and will reach an eight-year high next year according to the Organization for Economic Co-operation and Development. But needs private investment to sustain growth into 2019.
The organization nudged up its estimate to 3.6 percent for this year from 3.5 percent in its last forecast to reach 3.7 percent in 2018.
Catherine Mann, OECD Chief Economist, says several factors contributed to the improved economy.
“First there has been a continued monetary policy accommodation,” she explains. “But perhaps some people don`t know that actually there is quite a bit of fiscal stimulus in the system and that is added to the growth. The third element is that trade has recovered and it`s moving along quite smartly right now.”
With its strongest growth in a decade, the euro area was also seen outpacing other major developed economies this year and was up on previous forecasts. The OECD forecasts growth of 2.4 percent for 2017 dropping to 2.1 percent in 2018.
“There is no question that 2017 is a much better year for the euro area,” says Mann. “What we would like to do is to ensure that the momentum that is in place right now continues through 2018 and 2019.”
But Brexit means Britain is missing out on global growth. The OECD`s 2017 growth forecast of 1.5 percent makes Britain the weakest economy in the G7.
`Well there is uncertainty and there is a timetable for resolution of those uncertainties,” says Mann. “What we need to do is get to the position of a close economic relationship between the UK and th...
The world economy can be evaluated in various ways, depending on the model used, and this valuation can then be represented in various ways (for example, in 2006 US dollars). It is inseparable from the geography and ecology of Earth, and is therefore somewhat of a misnomer, since, while definitions and representations of the "world economy" vary widely, they must at a minimum exclude any consideration of resources or value based outside of the Earth.
For example, while attempts could be made to calculate the value of currently unexploited mining opportunities in unclaimed territory in Antarctica, the same opportunities on Mars would not be considered a part of the world economy - even if currently exploited in some way - and could be considered of latent value only in the same way as uncreated intellectual property, such as a previously unconceived invention. Beyond the minimum standard of concerning value in production, use, and exchange on the planet Earth, definitions, representations, models, and valuations of the world economy vary widely.
It is common to limit questions of the world economy exclusively to Human economic activity, and the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services, or in cases in which a lack of independent research or government cooperation makes establishing figures difficult. Typical examples are illegal drugs and prostitution, which by any standard are a part of the world economy, but for which there is by definition no legal market of any kind.
for November 2017
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