The Organization for Economic Co-operation and Development (OECD) increased its GDP economic growth prediction for Chile for 2018 from 2.8 to 3.6 percent, it announced on Wednesday. "And this news is better still knowing, that in part, the stronger growth of the world economy is supported by a welcome rebound in investment and in world trade", said Alvaro Santos Pereira, the OECD acting chief economist. "However, the current recovery is still being supported by very accommodative monetary policy, and increasingly by fiscal easing".
"A sharp housing correction is the biggest downside risk, as household debt has risen to high levels relative to income, and most mortgagees have interest rates that are floating or will be repriced within two years", the report said. The OECD forecast government gross debt would fall to 35.6 percent of GDP in 2019, from 35.7 percent in 2018 and 36 percent in 2017.More news: Waymo signs deal for 62,000 Chrysler Pacifica Hybrids
Economic growth across the OECD would remain close to 2.5 percent this and next year due to fiscal easing, according to the OECD report.
The OECD recommends to the Belgian authorities to increase public investment, which it said has been low for decades, to boost productivity growth.More news: Italy's anti-establishment leaders revive governing coalition
The OECD downgraded its growth forecast for Japan by 0.5 points to 1.2 percent. However, the outlook also underlines that significant risks posed by trade tensions, financial market vulnerabilities and rising oil prices loom large, and more needs to be done to secure a strong and resilient medium-term improvement in living standards. "This suggests that strong, self-sustaining growth has not yet been attained". "After monetary and fiscal policies have done their jobs, it's time for reforms to sustain the expansion, to improve well-being and to make growth work for all", he added.More news: NBA James' greatness overshadowed by 36 befuddling seconds