Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • June 2017
06

Global GDP to hit six-year high

Open-access content Thursday 8th June 2017

Economic growth worldwide will increase from a rate of 3% in 2016 to 3.5% this year – the fastest expansion of global GDP recorded since 2011, according to the OECD’s latest Economic Outlook.

2

In addition, growth will increase to 3.6% in 2018, with stronger business and consumer confidence, rising industrial production, and recovering employment and trade flows, all expected to contribute to the improvement.

Although these figures signify progress, they are still well below those recorded before the financial crisis in 2008, and not at the pace needed to escape fully from the 'low-growth trap'.

"After five years of weak growth, there are signs of improvement," OECD secretary-general Angel Gurría said. "There have, of course, been false dawns before, but we see more solid signs of improvement this time."

Global GDP growth since 2010 is shown below (%):

Global GDP growth since 2010

Although many countries have had their forecasts upgraded by the OECD, the UK's was unchanged, with GDP growth expected to slow from a little under 1.75% this year, to 1% in 2018.

However, these projections are based on the assumption that trade arrangements with the EU will be based on WTO rules following the UK's departure from the bloc in 2019.

In the euro area, growth is expected to increase by 1.8% this year and the next, while in the US; GDP is forecast to rise by 2.1% in 2017, and 2.4% in 2018.

It is strong growth in Asia that is mostly responsible for the global pick up, with GDP in India expected to strengthen to 7.3% this year and 7.7% in 2018, while growth in China is forecast to hit 6.6% in 2017 and 6.4% the following year.

Although the OECD report highlights how some factors could push global GDP up, financial risks and vulnerabilities in advanced and emerging economies, as well as high policy uncertainty, could see this growth jeopardised.

"Policymakers cannot be complacent," OECD chief economist, Catherine L Mann, said. "Better choices on fiscal, structural and international policies will improve the well-being of a country's own citizens, but also spill over to improve the outcome for others.

"This will raise the probability that the current cyclical upturn will endure and become the foundation for sustained and broad-based improvements in living standards around the world."

Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession
This article appeared in our June 2017 issue of The Actuary.
Click here to view this issue
Filed in:
06

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Make the switch from Pensions > Life Insurance

Manchester
Excellent Salary + Bonus (study support if required)
Reference
121040

Senior Reinsurance Pricing Actuary

City of London
Up to £130,000 + Benefits + Bonus
Reference
121063

Interim - Reporting Actuary - Inside IR35 - Nearly/Newly Qualified

London
Discussed Upon Application
Reference
121059
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2021 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200