Rising financial integration amplifies the global impact of financial market  shocks

by Nigel Pain and Véronique Salins, OECD Economics Department Stronger cross-border economic and financial integration implies that macroeconomic shocks in one country are increasingly likely to spill over into other economies. This is particularly true in national financial markets, where developments increasingly reflect common underlying factors, as shown in the special chapter of the latest OECD … More Rising financial integration amplifies the global impact of financial market  shocks

The global impact of weaker demand growth in China

by Nigel Pain and Elena Rusticelli,  Greater international integration has modified the transmission channels and the impact that external shocks have on domestic economies via increased trade openness and exposure to global financial developments. One important change, discussed in the special chapter of the latest OECD Economic Outlook, is that growth prospects in OECD economies … More The global impact of weaker demand growth in China

Could current inflation targeting frameworks be improved?

by Makoto Kasai and Łukasz Rawdanowicz, OECD Economics Department[1] As discussed in the latest OECD Economic Outlook, the prolonged undershooting of inflation targets, despite massive monetary policy stimulus and stronger economic growth and lower unemployment, raises issues about the appropriateness of current inflation targeting frameworks in advanced economies. While the frameworks differ in detail and implementation, they … More Could current inflation targeting frameworks be improved?

Stronger Growth but Risks loom large

By Álvaro S. Pereira, OECD Chief Economist ad interim, Economics Department After a lengthy period of weak growth, the world economy is finally growing around 4%, the historical average of the past few decades. This is good news. And this news is even better knowing that, in part, the stronger growth of the world economy … More Stronger Growth but Risks loom large

La croissance s’affermit, mais des risques assombrissent fortement l’horizon

Álvaro S. Pereira, Chef économiste de l’OCDE par intérim, Département des affaires économiques Après une longue période de croissance atone, l’activité économique mondiale croît enfin au rythme d’environ 4 %, qui correspond à la moyenne historique des dernières décennies. C’est une bonne nouvelle, et qui apparaît encore meilleure lorsque l’on sait que ce rebond de la … More La croissance s’affermit, mais des risques assombrissent fortement l’horizon

Un Mayor crecimiento, aunque se advierten importantes riesgos

Álvaro S. Pereira, Economista Jefe interino, Departamento de Economía de la OCDE Después de un largo período de débil crecimiento, la economía mundial finalmente está creciendo alrededor del 4%, cercano al promedio histórico de las últimas décadas. Esta es una buena noticia, y es aún mejor sabiendo que, en parte, el mayor crecimiento de la economía … More Un Mayor crecimiento, aunque se advierten importantes riesgos

Getting stronger, but tensions are rising

By Álvaro Pereira, OECD Acting Chief Economist The global economic expansion is strengthening. Global growth is projected to increase from 3.7% in 2017 to around 4% in 2018 and 2019 in our latest Interim Economic Outlook. In many advanced and emerging G-20 economies, the growth prospects for the next two years have improved. Global trade … More Getting stronger, but tensions are rising

High household debt: a challenge for medium-term growth?

By Filippo Gori and Théodore Renault, OECD Economics Department The global economy is now growing in sync at his fastest pace in years, but financial vulnerabilities create challenges for medium-term growth. Private indebtedness, including of households, remains a source of concern, as set out in the special chapter of our latest Economic Outlook on “Resilience … More High household debt: a challenge for medium-term growth?

Brighter futures or dashed expectations? The global recovery needs to deliver gains for all

By Lukas Lehner and Dorothée Rouzet, OECD Economics Department Global growth has gained momentum in 2017 and the economic recovery is moving forward, as shown in our latest Economic Outlook. Labour productivity is improving from its decade-long sluggishness. Yet, expected productivity gains still lag far behind pre-crisis norms, and will not be sufficient to set … More Brighter futures or dashed expectations? The global recovery needs to deliver gains for all

Investment, an engine of global growth that has yet to fire up

By Théodore Renault and Dorothée Rouzet, OECD Economics Department Global growth has strengthened, but policymakers face the challenge of lifting their economies’ long-term potential to ensure it remains robust and more inclusive. Private sector investment has slowed substantially in the past decade. Even though they have started to recover in most advanced economies, net investment … More Investment, an engine of global growth that has yet to fire up