OECD Boosts Global Growth Forecasts On Trump Optimism

The details of any Trump growth plan may not be available for a long time, but the general sentiment that Trump’s fiscal spending boost will be good for global growth was enough for the Organization for Economic Cooperation and Development which on Monday said that U. S. and global economic growth would be boosted by increases in spending and tax cuts promised by the President-elect. However, the OECD also cautioned that those gains would be lost if he pressed ahead with threatened tariff increases that triggered retaliation.
As the OECD wrote in its twice-yearly report on global economic prospects “while the exact form it would take is uncertain”, it does expect Trump to offer some fiscal stimulus from the early months of his presidency, and that its likely scale that would boost U. S. economic growth to 2.3% from 1.9% in 2017, and to 3% from 2.2% in 2018. As the WSJ briefed, there would also be benefits for other parts of the world as U. S. demand for imports rises, with global economic growth raised to 3.3% from 3.2% in 2017, and to 3.6% from 3.3% in 2018. The OECD is the first international economic policy agency to publish an estimate of the likely impact of Mr. Trump’s proposals.

This post was published at Zero Hedge on Nov 28, 2016.