Bulletin

OECD raises growth forecasts but warns of instability risk

eurozone

The Organisation for Economic Co-operation and Development has sharply upgraded its growth forecasts for the eurozone, in the latest sign that low oil prices and the European Central Bank's quantitative easing project have lifted hopes for the region's recovery. In its Interim Economic Assessment, the OECD said it now expects the eurozone to grow by 1.4% this year and 2% in 2016. This is 0.3 percentage points faster than previously anticipated for both years and in line with the latest forecasts from the ECB. The OECD also raised its predictions for global growth, forecasting Japan and India will expand more than previously thought. But its economists warned that the environment of low inflation and interest rates creates a growing risk of instability. 'Mispricing of risk was at the heart of the previous financial crisis, and such mispricing may be in evidence again,' it cautioned.

 

Note: News bulletin content has been provided by a third-party and is not the opinion of Santander.

Other Articles

The new Apprenticeship Levy could help transport and logistics companies solve their recruitment problems and equip their workforces with…

Cornwall is a land steeped in legend but this salty business success story is no myth.

Santander Incubator social enterprise, Liverpool Girl Geeks, has secured £20k in Rosa funding to help them grow their programmes and…

Santander Incubator social enterprise, Liverpool Girl Geeks, has secured £20k in Rosa funding to help them grow their programmes and…

Travelstar European Ltd, one of the West Midlands’ leading coach hire companies, has moved to larger premises in Portland Street, Walsall,…

Santander’s local Business Banking team recently held a Breakthrough Masterclass at the English Whisky Company, with local East Anglian…

Where Next?