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World economic growth in 2017 is likely to be the strongest since 2010

According to the latest OECD report, it is expected that this year global economic growth may be the most intensive since 2010, with the US economy and the EU economy showing the best dynamics in this respect.

The report also says that next year the growth momentum will continue, but in 2019 there may be a decline if steps are not taken to support corporate investments, since their volumes are below those that were observed before the last financial crisis. The economy lacks more active competition, which would be a stimulant for investment growth and productivity gains, which would provoke wage growth.

The report once again reiterated the warning that there is a serious risk of a mismatch between an actively growing asset value and restrained economic growth, and the OECD is concerned about the high debt burden. The indicators responsible for it, report a danger, but are still below the values ​​that were observed before the very crisis of 2007, although they came close enough to them. In addition, the OECD has proposed the reform of tax systems, so that the creation of equity capital would be more beneficial than borrowing.

The forecasts for the economic growth of the US and the EU for the current and subsequent years have been revised upward. For this year, the report includes values ​​of 2.2% for the US and 2.4% for the European economy. If these figures are correct, then the eurozone will again be ahead of the US. Next year, the ratio looks more familiar: 2.5% for the US and 2.1% for the euro area. In two years, the US economy will slow down its growth momentum, but still will outpace the European one.

The forecast for China remained unchanged, at the level of September, but the Canadian revised with a decrease. In general, it is expected that the global economy will gain 3.6% by the end of this year, which is 0.1% higher than the previous forecast. Next year, an increase of 3.7% is expected.