OECD forecasts better growth ahead

According to the new views, global gross domestic product (GDP) growth is projected to rise to about 4% from a level of 3.7% in 2017. The OECD, which groups 35 developed economies, called on the world's major nations to avoid a dispute that could impede trade, demand, competition and, ultimately, the health of the global economy.

The OECD also said that the world economy is set to grow at an annual rate of 3.9% over the next two years.

The Organization for Economic Co-operation and Development (OECD) has released its interim economic outlook for global growth for 2018 and 2019.

However, it warned that the recovery risked being undermined by an escalation in trade barriers that would hurt growth and jobs.

In an update to its forecasts, it said that preserving "the rules-based global system is essential to prevent the longer-term harm to growth prospects that could arise from a retreat from open markets".

Mr Pereira added the introduction of the trade tariffs by the US President is not the right way of solving the problem of excess steel production and has urged the Trump administration to seek a collective solution through the OECD. Against that backdrop, the Federal Reserve would probably have to raise interest rates four times this year as inflation picked up, Pereira said.

Britain, however, was seen missing out on the global upturn, lagging all other G20 countries with growth of only 1.3 per cent this year, although up from a November forecast of 1.2 per cent due to the broader global improvement.

"Parliamentary Home Affairs Committee chairman Yvette Cooper tweeted: "£1.5bn allocated for Brexit preparations but no sign of that £350m extra a week for the NHS".

The Outlook underlines the boost to short-term growth expected from new tax reductions and expected spending increases in the United States and expected fiscal stimulus in Germany, but also points out a number of financial sector risks and vulnerabilities, as well as those posed by a rise in protectionism.

In the final quarter of 2017, the UK's GDP growth was revised to 0.4% from a previous estimate of 0.5%. For the eurozone as a whole, growth is forecasted at 2.3 percent this year and 2.1 percent in 2019, a 0.2 point upgrade in each year.

Vanessa Coleman