Growth rates among the world's major economies are synchronising at levels not seen in years as the euro zone catches up with United States, according to the OECD. As Sonia Legg reports, it forecasts the global economy is set for growth this year of 3.5 percent before reaching 3.7 percent next year.
It's been on the up since the start of the year. But even a 13 percent increase in the value of the euro isn't worrying the OECD. The Paris-based policy forum expects global growth of 3.5 percent this year and 3.7 the next. (SOUNDBITE) (English) OECD CHIEF ECONOMIST, CATHERINE MANN, SAYING: "We do have short-term momentum in the global economy, it has become more broad-based. Firstly we have incoming data that has created this momentum. Secondly, it is synchronised across countries. And thirdly, there is policy support." The unions may not be happy with President Macron but the outlook for one-time laggard France is almost half a percent better than the previous 1.3 percent forecast. And Italy - whose banks have needed some care recently - is also up by 0.4 percent from 1 percent. (SOUNDBITE) (English) CHIEF INVESTMENT OFFICER, CCLA INVESTMENT MANAGEMENT, JAMES BEVAN, SAYING: "The global economy looks to be on a path of sustainable real economic growth - neither too fast nor too slow. That is a propitious climate for markets generally. There are obviously risks out there which the ECB will highlight, including and in particular the potential for a slowdown in China." But China's growth was raised to 6.8 percent. Even Brexit-hit Britain should manage 1.6. The only real worry for central banks - ongoing low inflation and the risk of a markets' stumble. (SOUNDBITE) (English) PANMURE GORDON CHIEF ECONOMIST, SIMON FRENCH, SAYING: "I don't think it's much of a mystery why markets are currently at all time highs. It's just whether that is sustainable when you are challenged by potential normalization in the US and less stimulus coming in from the euro zone and in the UK." No wonder then that central banks remain the focus - with more synchronicity expected.