Cyclical|The OECD predicts that economic growth in the euro area will strengthen to 1.3 percent next year.
Industrialized countries the cooperation organization OECD estimates that the world economy will strengthen. Based on the new forecast published on Wednesday, the world economy will grow by 3.2 percent this year and by the same amount next year.
“The turn in the global economy is starting when inflation slows down and trade grows strongly”, says OECD Secretary General Mathias Cormann in the bulletin.
The OECD predicts that the US economy will grow by 2.6 percent this year and 1.6 percent next year. The Eurozone Economic Organization estimates growth of 0.7 percent this year and 1.3 percent next year.
of the euro area economic growth is accelerated by the increase in the real earnings of households and the improvement in the availability of financing, which is a result of the European Central Bank’s interest rate cuts.
The OECD estimates that the US central bank will lower its key interest rate to 3.50 percent by the end of next year, and the European Central Bank to 2.25 percent.
The US central bank’s policy rate currently ranges from 4.75 to 5.00 percent, and the European central bank’s policy rate is 3.50 percent.
According to the forecast, the gross domestic product of Germany, Europe’s largest national economy, will grow by 0.1 percent this year and 1.0 percent next year. Germany is one of Finland’s most important trade partners. The development of the German economy has a great influence on how the demand for Finnish export industry grows.
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