The OECD (Organisation for Economic Co-operation and Development) forecasted on October 9 that the major economies worldwide would continue their growth momentum even in 2018. This conclusion was reached when the IMF and World Bank are having their semi-annual meeting in New York with G20 finance ministers and the Central Bank governors.
The economic experts of OECD are closely monitoring the progress of significant economies worldwide to take decision strategically, and that does not hinder the growth rate of the economies. America is all set to hike their interest rate for the third time in December while European Central Bank (ECB) is waiting for the ball to drop and to reduce bond-buying programme, an initiative taken after 2008 financial crisis.
The OCED indicator has projected a scenario which leads to a decisive growth spurt in the leading economics that mainly contributes to world’s economic output. The latest figure stands at 3.6 annual growth in the last quarter which is the most robust growth rate seen after two years. The final spurt of increase in the economy was in the first quarter of 2015.
Experts have predicted that in the next six to nine months significant players such as U.S, Japan, and most of the European countries will maintain a stable growth and countries such as Italy will experience a fast-forward growth.
Even countries like Brazil, which had a massive political unrest early this year will experience high growth. The downside of this forecast is that the important economies of UK and Russia will face a decelerating growth given the state of the countries economy.
However, the overall growth forecast has increased the optimism and positive outlook of the OECD. The President of the ECB, Mr.Mario Draghi and Fed Chair Ms. Janet Yellen are on the decision of deliberating and evaluating the market growth and are not in a hurry of making decisions based on this growth spurt.
The ECB president has maintained the Euro Stimulus Programme despite the steady growth of the EuroZone economy, and Ms. Yellen has postponed a rate increase in September. All in all, it is safe to assume that the world economies are in the path of economic progress with a nod to the cautions around them.
