Via The Australian:
The world economy is set to enjoy growth of almost 4 per cent both this year and next while unemployment across the advanced nations will drop to its lowest level since 1980, new projections by the OECD show.
The OECD’s outlook is consistent with the Australian budget forecasts, predicting that the Australian economy will achieve growth of 2.9 per cent this calendar year rising to 3 per cent in 2019.
The OECD expects that the economy’s growth will be sufficient to justify the Reserve Bank beginning to lift interest rates by the end of this year.
“Fiscal policy is the new game in town: three quarters of OECD countries are now undertaking fiscal easing. The fiscal stimulus in some countries is very significant, while it is less ambitious in other countries,” OECD chief economist Alvaro Pereira said.
Yeh, yeh. Blah, blah. These outlooks are formed in conjunction with the host countries. That’s one reason why they’re always wrong. They’re propaganda. That’s right, the Australian Treasury has become merely an advertising arm of the federal government:
Find out how #Budget2018 is making our #economy stronger & create more jobs & opportunities for Australians. Learn more at https://t.co/hTwLxhiVFS pic.twitter.com/08sG6IA1yS
— Australian Treasury (@Treasury_AU) May 22, 2018
The other reason they are always wrong is that they’re full of trend line economists that have no idea what they’re doing.
At least these days they come with health warning, more from the AFR:
Alongside a sudden slowdown in China, Australia’s biggest concerns remain high household debt.
“Unexpectedly large corrections in house prices would reduce household wealth, and could cut consumption and damage the construction sector,” the OECD said.
“Risks from the housing market and high household indebtedness warrant continued vigilance.”
It’s not a risk, it’s reality. House prices are falling and will constrain consumption leading to no Futureboom!
