OECD: Global growth is strengthening but longer-term challenges remain

The Organization for Economic Cooperation and Development (OECD) raised the global growth forecasts for 2017 in its latest outlook.

Key Points:

OECD Forecasts 2017 Global Growth Of 3.6% (+0.1 from Sept), 3.7% In 2018 (Unchanged).

Sees 2017 US Growth Of 2.2% (+0.1), 2.5% In 2018 (+0.1).

2017 Euro Area Growth Of 2.4% (+0.3), 2.1% In 2018 (+0.2).

2017 UK Growth Of 1.5% (-0.1), 1.2% In 2018 (+0.2).

2017 Japanese Growth Of 1.5% (-0.1), 1.2% In 2018 (Unchanged).

2017 Chinese Growth Of 6.8% (Unchanged), 6.6% In 2018 (Unchanged).

Global growth is strengthening but longer-term challenges remain.

Policy stimulus is supporting upturn but private investment recovery is modest.

Inflation and wage growth remain subdued.

Corporate indebtedness is high and rising, creating vulnerabilities.

High debt makes households in many countries vulnerable to shocks.

ECB should wait until 2020 to raise the key interest rate.

BOJ will need to rethink policy if inflation remains elusive.