OECD Economic Outlook No 98: With stagnant global growth and trade OECD calls for collective public investment stimulus


Commenting on the further downward revision of growth forecasts in the latest OECD Economic Outlook, TUAC General Secretary said “the forecasts show that “business as usual” on economic policy won’t work to bring about global economic recovery. It is welcome that the OECD is now calling for “collective action to increase public investment”. But this has to be followed up by action by governments in particular the euro area. The price of failure to act is the risk of a further recession.”

The Outlook also admits that the OECD is lacking wage growth and the assumption that growth in advanced economies would pick up thanks to pick up in wages is not valid. Evans said “the OECD needs to be consistent: Instead of making the usual call for  structural reforms, the OECD needs specifically to call for increasing minimum wages and promoting the role of collectively bargained wages as a benefit to our economies.”

The Outlook is being released shortly before the G20 Antalya Summit – preceded by the L20 Summit that will bring together 60 trade union leaders from the G20 countries and beyond. Speaking in advance of the L20 Sharan Burrow General Secretary of the ITUC said: “Rising inequality is a global risk and the labour income share has fallen to dangerously low  levels, but will the G20 leaders recognize wage rises are vital for workers and the economy? “

Information on the OECD Economic Outlook is available here and information on the L20 Summit is available on the L20 web-site.