A new report from the Organisation for Economic Co-operation and Development (OECD) has predicted global growth will be less than expected in 2015.
According to the thinktank’s latest bi-annual report concerning global economic outlook this year, the group’s predicted level of economic upturn for the full 12-month period has now been downgraded from 3% to 2.9%.
OECD chief economist Catherine Mann said in her introduction to the report: “This is deeply concerning. World trade has been a bellwether for global output.”
At the same time, Ms Mann noted there is a cause for optimism that policymakers are taking steps to offset uncertainty and to create a stronger atmosphere for growth in many global markets.
Indeed, she added: “Policy actions are already being implemented that will help to address the weak underlying trends. For example, China has announced a range of stimulus measures including lowering bank lending rates and expanding infrastructure investment.”
In their latest full trading session, Asian markets saw mixed results in the wake of this latest OECD report, with the full impact of its findings yet to be fully absorbed by investors.
China’s beleaguered Shanghai Composite Index continued to surge towards recovery in early trading this week with gains of 1.59% on Monday (9 November 2015), while Japan’s Nikkei Stock Average 225 was also up by 1.96%.
However, both the Hong Kong Hang Seng Index and Australia’s ASX All Ordinaries Index suffered respective losses of 0.61% and 1.7% in their latest full sessions.