Growth gaining momentum within OECD

8 Jul 19

The composite leading indicators that aim to forecast trends six to nine months ahead point to “stabilising growth momentum” in OECD countries. 

Among major OECD economies, Japan and Canada are doing particularly well while France is maintaining its momentum, although growth may ease in the United States and the euro area.

The Washington-based organisation has said that the indicators pointing to stabilising growth momentum in the OECD area as a whole reverse last month’s assessment of easing momentum.

However, within the euro area, growth momentum has been easing in in Germany and Italy, it says.

In the UK, tentative signals of stable growth momentum last month have been confirmed, but there continue to be large margins of error due to continuing uncertainty over Brexit.

Among major emerging economies, the indicators continue to anticipate stable growth momentum in China – particularly in its industrial sector – India, Russia and now also in Brazil.

Separate data indicate that global demand for agricultural products is projected to grow by 15% over the coming decade, while agricultural productivity growth is expected to increase slightly faster.

The annual launched in Rome suggests that this growth with cause inflation-adjusted prices of the major agricultural commodities to remain at or below their current levels.

The outlook projects that yield improvements and higher production intensity, driven by technological innovation, will result in higher output even as global agricultural land use remains broadly constant. 

Direct greenhouse gas emissions from agriculture, meanwhile, are expected to grow by 0.5% annually over the coming decade – below the 0.7% rate of the past 10 years, indicating declining carbon intensity. 

  • Gavin O'Toole, expert on Latin America
    Gavin O'Toole

    A freelance journalist. He has written six books about Latin America and taught the politics of the region at Queen Mary, University of London.

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