Global economic growth is set to peak at an eight-year high next year as uninspiring investment and increasingly dangerous debt levels limit room for further improvement. As David Pollard reports, the OECD's latest outlook suggests the global economy is on course to grow 3.6 percent this year before reaching 3.7 percent next year then easing back in 2019.
It's wet, but not wet enough to dampen the appetite to spend. But as the euro zone shapes up for Christmas, it may not be the only region looking forward to a bumper year .... (SOUNDBITE) (English) OECD SECRETARY-GENERAL, ANGEL GURRIA, SAYING: "The good news is that the global economy is gaining momentum. Global growth is accelerating from 3.1 percent in 2016 to a projected 3.6 percent this year and 3.7 percent next year." Along with the good news in the OECD's latest outlook, there is bad .... (SOUNDBITE) (English) OECD CHIEF ECONOMIST, CATHERINE MANN, SAYING: "Productivity and wages are not being, are not robust enough in order to support that momentum through 2019. It means in some sense we're flying low, got wind under the wings but we're flying low. " Which, it argues, means next year's growth will peak at an eight-year high amid low investment. As for regions, the euro zone's seen outpacing other major developed economies, with 2.4 per cent growth, this year But then lagging an accelerating US economy next. SOUNDBITE (English) CITY INDEX MARKET ANALYST, KEN ODELUGA, SAYING: "By and large you've got a bit of a Goldilocks situation that's kept growth on track. We do need all of these you know sort of like firing factors to remain in place and you know that is the main risk I think." Though the world's number two economy could pose the other big risk. (SOUNDBITE) (English) OECD SECRETARY-GENERAL, ANGEL GURRIA, SAYING: "Particularly worrying are the high levels in continued growth of corporate debt levels in China, given the importance of China to the world economy." Growth there seen slipping from 6.8 this year to 6.4 in 2019 as exports slow - Japan also to ease back. As major economies face a slower burn ahead.