A small world growth outlook, after all

The OECD has joined calls for loose monetary policy and warned on budget tightening. It's a view that reflects its concerns about growth around the world.

The Organisation for Economic Cooperation and Development, much like the Reserve Bank, expects below trend growth for Australia over the next couple of years. But the global recovery is set to continue, albeit at an incredibly slow pace.

The OECD says that global activity and trade is set to strengthen gradually in 2014 and 2015, but the recovery will remain only modest. According to the OECD, the modest recovery reflects the continued flow through of improving financial conditions, loose monetary policy and reduced drag from austerity measures.

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Callam Pickering

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