Mixed OECD messages highlight need for measures to boost growth

29th May 2013

Commenting on the latest Economic Outlook, published today by the Organisation for Economic Co-operation and Development (OECD), David Kern, Chief Economist at the British Chambers of Commerce (BCC) said: -The new OECD forecast signals mixed messages for the global economy, as well as the UK.

While the economy should see stronger growth in 2014, it is notable that the OECD has downgraded its predictions for this year. It provides a glaring reminder that the growing optimism in the financial markets, with soaring share prices in many centres, is not yet reflected in the real economy. -There is a stark contrast between the steady improvement in the US and the further setbacks in the eurozone, where the OECD expects an even bigger fall in GDP this year to -0.6%. This is unwelcome news for UK exporters that still rely too much on this region. We welcome the OECD's comments for a greater shift in government priorities towards infrastructure investment as this is something that the BCC has long campaigned for. The Chancellor must use next month's Spending Review to shift current spending towards capital investment, which will in turn help to drive a business-led recovery.