Weak UK growth could drive up unemployment rate, warns OECD

House prices in some markets are still rising despite the use of macro-prudential tools

The Paris-based OECD, whose members include Canada, the United States and numerous world's richest economies, said businesses and consumers are increasingly confident and employment and trade are recovering.

In 2017, India's GDP growth is expected to hit 7.3 per cent and 7.7 per cent the following year, slightly better lift than figures released by the Statistics Office last week, but largely in tandem with a World Bank report on robust growth in the country. The OECD raised its forecasts for the eurozone for both this year and next, and nudged up forecasts for Japan and China.

Expansion is buoyed by accelerating infrastructure investment tied to regional integration plans and the Belt and Road initiative, the Paris-based group said in a report Wednesday.

"As the economic outlook improves and inflation approaches the target by end-2018, the degree of monetary stimulus is projected to be somewhat reduced, with the asset purchase programme being tapered off gradually over 2018 and the deposit rate being increased by 15 basis points towards the end of 2018", the report said.

Over Seoul's decision to deploy a USA -led missile system, the Beijing government's retaliatory measures against Korean-made consumer goods and a ban on tour groups may drag down the country's GDP growth by 0.2 percentage point, as China accounts for a quarter of South Korean exports, it added.


"Lower revenue collection stemming from weaker growth could endanger fiscal consolidation plans and call for further cuts in government spending, weighing further on growth".

Its forecast for the United Kingdom is in contrast to its projections for the world economy growing by 3.5% this year and 3.6% next year.

The UK economy is set to slow this year and next, clouded by uncertainty over the outcome of the UK's negotiations over Brexit.

For the economy overall, the OECD estimates Canada's gross domestic product will grow by 2.8 per cent this year, double last year's performance of 1.4 per cent.

Australian commodities linked to the Chinese economy remain an important source of income and growth, but also bring "uncertainty and risk".

Share

Related News

  • Saudi's Falih says more oil output cuts possible, will assess in July

    He said the nation's oil production was still hovering around 1.5 million barrels per day, down from around 2.2 million b/d. They dropped $1.34, or 2.7 percent, in the previous session to settle at $48.32 per barrel, the lowest close since May 12.

    Off Air with Tony Tone: We need Wonder Woman!

    Hot Toys has announced and revealed on Facebook a brand new Wonder Woman figurine based on her appearance in the new film. Pictures and DC Films' Wonder Woman has earned $11 million in Thursday previews with $1.5 million from IMAX.

    Questions about Russian Federation chase Trump during first Israel visit

    The President edited the speech with his aides during the 14-hour journey from Washington, Spicer said. The U.S. has never recognized Israeli sovereignty over parts of the Old City seized in the 1967 war.
  • Clinton and Trump trade barbs on Twitter

    Clinton and Trump trade barbs on Twitter

    Clinton this week continued taking responsibility for her loss to Donald Trump , but then immediately blaming others. John Hagner, a partner at Clarity, added: "I worked with DNC data every day last cycle, on winning Gov races".

    Ariana Grande gets emotional as she closes One Love Manchester concert

    Grande tweeted "Praying for London" while her manager Scooter Braun said the concert would go ahead "with greater purpose". Gallagher, formerly of Oasis, earned loud cheers from the audience as he emerged in his home town in surprise form.
    Van strikes pedestrians on London Bridge

    Van strikes pedestrians on London Bridge

    Husband and wife Ben and Natalie told BBC Radio 5 Live they were outside Borough Market when they witnessed the incident there. Police responded to a third incident in the Vauxhall area, but have determined it was a stabbing a not a terror incident.
  • Kelly Barnhill throws 2-hitter, leads Florida past LSU 2-0

    Kelly Barnhill throws 2-hitter, leads Florida past LSU 2-0

    Oklahoma's Paige Parker (24-5), selected the Most Outstanding Player of last year's series, allowed 1 run and 5 hits in 6 innings. It was her first career home run in the NCAA Tournament. "They just attacked my mistakes and made us pay for it".
    AMD Boasts Rising Support For Ryzen Chips: Should It Worry Intel?

    AMD Boasts Rising Support For Ryzen Chips: Should It Worry Intel?

    The Ryzen mobile processor is a step ahead in terms of CPU performance and is 40% better on graphics than AMD's current products. Last were the announcements of Ryzen CPUs and RX 500 GPUs being integrated into the mobile platform of laptops and notebooks.
    Skipper Eoin Morgan sees South Africa rout as timely lesson for England

    Skipper Eoin Morgan sees South Africa rout as timely lesson for England

    Fast bowler Rabada took four wickets for 12 runs in his first three overs, before eventually finishing with four for 39 in nine. We probably didn't read the conditions as well as we could have done but credit to them on a wicket which had a little bit in.
  • After watching India-Pakistan match, Vijay Mallya arrived at Virat Kohli's dinner

    After watching India-Pakistan match, Vijay Mallya arrived at Virat Kohli's dinner

    But, what made headlines was the fact that "absconder" Vijay Mallya was spotted in the crowd at Edgbaston, enjoying the match. But normally what happens at the charity dinner is that someone who has bought a table is entitled to invite his guests.
    Spieth Right Back In The Mix At Memorial

    Spieth Right Back In The Mix At Memorial

    Dufner, 40, has won just four times on Tour, but he is a Major champion courtesy of the US PGA crown he earned in 2013. Dufner, who grew up in northern OH , missed the cut the first two times he played Muirfield Village.
    Alt-Right rally cancelled in Portland, moves to Seattle instead

    Alt-Right rally cancelled in Portland, moves to Seattle instead

    The federal government has declined to revoke a permit for Sunday's pro-Donald Trump free speech rally in downtown Portland. Local publications as well as the Southern Poverty Law Center have described him as a "known white supremacist".