Disconnect between stock market and economy, OECD warns

Recent data indicates price growth has eased in most urban centers

Recent data indicates price growth has eased in most urban centers

Moreover, "financial vulnerabilities and policy risks could derail the modest [global economic] recovery", writes the OECD Chief Economist Catherine Mann.

OECD chief economist Catherine Mann said: "The pick-up in growth from countries taking fiscal initiatives is broadly welcome, but we can not ignore the danger that the recovery gets knocked off track by policy errors or financial risks and vulnerabilities". But looking out to 2018, the OECD expects Canada's economy will grow 2.2 per cent, a small decrease from the November outlook of 2.3 per cent.

In its interim economic outlook, published today, the think-tank said it expected growth to rise to 3.6% next year, up from 3.3% forecast for 2017.

Though Washington was not alone in using nationalistic rhetoric, Mann said the OECD had estimated that a 10 per cent increase in United States import costs would percolate through the economy and ultimately lift export costs by 15 per cent.

The modest pick-up in global growth in 2017-18 reflects the effect of ongoing and projected fiscal initiatives, notably in China and the United States, and initiatives in other economies such as Canada, the report says.

"Falling trust in national governments and lower confidence by voters in the political systems of many countries can make it more hard for governments to pursue and sustain the policy agenda required to achieve strong and inclusive growth", the OECD said.

Chinese firm ZTE pleads guilty to breaking Iran sanctions
The company said it was committed to making changes to become "a model for export compliance and management excellence". ZTE then repeatedly lied to and misled federal investigators, its own attorneys and internal investigators.

"Now, more than ever, governments need to take actions that restore people's confidence while at the same time resisting turning inwards or rolling back numerous advances that have been achieved through greater worldwide co-operation", OECD Secretary-General Angel Gurría said, commenting on the report.

China's growth forecast for this year was raised to 6.5 percent and for next year to 6.3 percent.

"Efforts are needed to strengthen domestic policies that support trade openness, maximize the gains from trade and ensure that the benefits are fairly shared, with obstacles to the process of reallocation and transition for workers reduced", the OECD said.

Next year, the USA economy is projected to grow by 2.8 per cent and Canada's is expected to expand by 2.2 per cent, ahead of the other G7 countries. GDP for the area as a whole is expected to expand at an annual rate of 1.6% in both 2017 and 2018. "The positive assessment reflected in market valuations appears disconnected from real economy prospects", the OECD said. And growth in consumption and investment is still lagging.

Higher commodity prices and easing inflation are supporting a recovery from deep recessions in Brazil and Russian Federation.

This year's 0.4 percentage point upgrade was larger than for any... Focussing on policies that build structural elements into fiscal initiatives would reduce the burden on monetary policy in the advanced economies and help to boost trade, investment, productivity and wages.

Recommended News

  • Bird flu found at commercial chicken farm in Tennessee, USDA says

    Bird flu found at commercial chicken farm in Tennessee, USDA says

    The U.S. has stepped up biosecurity measures aimed at preventing the spread of bird flu after the outbreak two years ago. A virus that can be deadly to domesticated chickens and turkeys has been detected in Tennessee.
    Girlfriend of Philando Castile arrested in alleged hammer assault

    Girlfriend of Philando Castile arrested in alleged hammer assault

    Anthony Police Department, a Latino, shot Castile seven times after the elementary school cafeteria worker told him he was armed. One of the women told police "there was a continuing conflict between her and" a friend of Tuesday's assault victim.
    Twelve people treated for potential chemical weapons exposure in Mosul

    Twelve people treated for potential chemical weapons exposure in Mosul

    Those people, who continue to remain in the sieged Mosul, are on the verge of a humanitarian disaster. For its part, the United Nations said it is working as fast as possible to help those displaced.
  • Gayatri Prajapati should surrender, resign: Samajwadi Party

    Gayatri Prajapati should surrender, resign: Samajwadi Party

    A non-bailable warrant was issued against Prajapati on Saturday after reports started pouring in he may try to flee the country. The apex court had directed the Uttar Pradesh Police to file a status report in the case within a period of eight weeks.

    Trump Accuses Obama of Tapping Trump Tower Phones

    Because the requests and the FISA court orders are secret, it's hard to get information about them. If they're going to investigate Russian Federation ties, let's include this as part of it.

    Early Reviews For The Nintendo Switch Are In

    The Switch's big innovation is its versatility, Kotaku said in its review, calling it the Swiss Army Knife of video game players. The Nintendo Switch is a hybrid game machine that works as both a console at home and a tablet on the go.
  • VW unveils the "Sedric" self-driving auto

    The futuristic looking auto also has sixth sense ability as the Sedric is equipped with seven cameras and five lidar sensors. It's operated via a special key which VW calls the OneButton, which the operator presses to summon the Sedric .
    Arsenal v Bayern Munich

    Arsenal v Bayern Munich

    Free-scoring Bayern are in a rich vein of form and are unlikely to allow complacency to set in at the Emirates tonight. I wouldn't be at all surprised if we see at least two goals before half time, an outcome that is trading at [1.91].
    Querrey Completes Dream Run with Win over Nadal in Acapulco

    Querrey Completes Dream Run with Win over Nadal in Acapulco

    The 29-year-old Querrey ended Nadal's unbeaten streak in the Mexican Pacific resort city in Saturday night's final, reports Efe. Cilic advanced when American Steve Johnson withdrew because of a right ankle injury.
  • New Retail Releases: Nier Automata, Ghost Recon Wildlands, Lego Worlds, more

    New Retail Releases: Nier Automata, Ghost Recon Wildlands, Lego Worlds, more

    At the same time, there will be a free PvP expansion, where you will be able to fight against other players. However, Ubisoft has recently shared an infographic showing the numbers related to the beta of the game.

    Mercedes Hit-And-Run: Teen Crushed In Delhi's Paschim Vihar, Probe On

    Officials from the police said that they have begun investigations and are working towards tracking down the accused. The boy was riding a scooter when a speeding Mercedes lost control and rammed into the two-wheeler.
    Facebook rolls out 'disputed tag' to crackdown on fake news

    Facebook rolls out 'disputed tag' to crackdown on fake news

    All fact-checkers are signatories of the " code of principles " prepared by journalism non-profit organization Poynter. The disputed tag is meant to inform users that the information presented in a news article is not accurate.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.