The global economy is on course this year for its fastest growth in six years as a rebound in trade helps offset a weaker outlook in the United States. The OECD has forecast growth of 3.5 percent this year and 3.6 percent in 2018. David Pollard reports.
Three and a half per cent this year and 3.6 next. The OECD's latest forecast sees the best global growth in six years. If it comes with a warning .... The OECD producing what it called a 'bumper sticker' to push it home. SOUNDBITE (English) OECD CHIEF ECONOMIST, CATHERINE MANN, SAYING: "This headline year is is really what it's all about. Better, but not get enough..." The outlook for China, Japan and the euro zone all nudged up. But the UK unchanged - and the US downgraded. SOUNDBITE (English) OECD SECRETARY-GENERAL, ANGEL GURRÍA, SAYING: "The message is here that after ten years we have still not achieved the cruising speed before the pre-crisis level." An OECD risk list of protectionism, regulation and divergence in central bank policies still clouding the outlook. (SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING: "Just because the economy is running well today, just because the growth figures look pretty good, it doesn't mean to say that we're out of the woods. And I think that the risk profile or the uncertainty profile surrounding this forecast is probably as high as it's ever been." German industrial orders weren't good enough for economists. A drop of 2.1 per cent in April much bigger than forecast. But most see that as a small blip in the euro zone recovery. On a day when the Bank of Spain said growth there could top three per cent this year. And a day before the ECB's latest policy meeting. (SOUNDBITE) (English) GLOBAL FINANCIAL ECONOMIST, COMMERZBANK, PETER DIXON, SAYING: "The downside risks to growth that we have seen over the course of the last year or so are beginning to dissipate and you might start to see signs in the language from the ECB statement that, you know, maybe the risks to growth are increasingly balanced." Though the day's other headline was of a deal to rescue one major Spanish lender from collapse - those risks still present in the euro zone too.