In its interim economic outlook report issued Tuesday, the organization forecast global economic growth for this year at 3.9 percent, up from its previous suggestion of 3.7 percent. The figure for next year was also increased from 3.6 percent to 3.9 percent.
The progress was largely steered by the tax system reform and government expenditure expansion in advanced countries such as the United States and Germany, the report showed.
As downside risks, the report cited persisting gestures of trade protectionism, the normalization of monetary policies in key countries, demographic changes and a decrease in mid- and long-term investment.
“Backed by the global trade recovery, minimum wage hike, and household income expansion, South Korea‘s economic growth will remain at 3 percent in 2018-2019,” the OECD report said, retaining its former forecast for Asia’s fourth-largest economy.
China and Japan were forecast to achieve yearly growth rates of 6.7 percent and 1.5 percent, respectively, this year.
By Bae Hyun-jung (firstname.lastname@example.org)