Growth too tepid to reduce inequality: OECD
08 Jun 2017 - 1:12
Paris: The small pick-up in global growth expected this year is insufficient to reduce inequalities around the world, the OECD said yesterday as it called on nations to launch reforms to remedy the situation. “We need a more inclusive, rules-based globalisation that works for all, centred on people's well-being" said OECD chief Angel Gurria, as the body released updated economic forecasts.
The Organisation for Economic Cooperation and Development, which provides analysis and policy advice to advanced economies, increased its forecast for global growth this year by two tenths of a percentage point to 3.5 percent on a recovery in global trade, even if remains below the levels before the onset of the global economic crisis.
"This still-modest cyclical expansion is not yet robust enough to yield a durable improvement in potential output or to reduce persistent inequalities," said the OECD's chief economist, Catherine Mann. She said changes to budget policies could both improve the well-being of citizens, as well as have positive effects globally.