Economic Outlook: Short-term momentum: Will it be sustained?

Key messages

The short-term momentum has become more broad-based

•Growth performance has improved more than expected in the euro area

•The upturn is synchronised across major economies

•Policy support in a number of economies has boosted the first half of 2017

But strong and sustained medium-term growth is far from secured

•More robust private investment is needed for a self-sustained recovery

•Inflation remains subdued and wages have not picked up

•Stronger future growth in emerging market economies will depend on deeper reform

Policy must not be complacent: fiscal and structural initiatives need to be used

•Rebalance from monetary to fiscal and structural support for growth and wages

•Monetary policy needs to balance being supportive, yet also managing financial risks

•Use fiscal space, with better tax and spending policies to achieve inclusive growth

•Step up structural reform effort to boost productivity, wages and skills

Fuente: OCDE

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