It is a great pleasure to be back in Tokyo to present the OECD’s 2017 Economic Survey of Japan. Let me thank the Japanese Government, in particular the Cabinet Office, for their support in the preparation of this Survey.
Remarks by Alvaro S. Pereira, Director, Country Studies, Economics Dept
I am delighted to be back in Madrid to present the latest OECD Economic Survey of Spain. I would like to thank Minister Guindos for his kind invitation, and to pay tribute to the excellent collaboration between the OECD and his team during the preparation of this report.
What a pleasure it is to be in Madrid once again to participate as a speaker in the La Caixa forum on Economy and Society. I am grateful to Caixa Bank and its president, Jordi Gual, for this invitation. Tomorrow we shall be presenting the OECD’s 2017 Economic Survey of Spain, so I would like to prepare the ground a day in advance by sharing with you some of the OECD’s thoughts about the world economy.
Qué gusto estar en Madrid de nuevo para participar como conferencista en la Cátedra La Caixa Economía y Sociedad. Agradezco a CaixaBank y a su Presidente, Jordi Gual, por esta invitación. El día de mañana presentaremos el Estudio Económico de España 2017 de la OCDE, y me parece muy apropiado preparar el terreno un día antes en este recinto, presentándoles algunas de las perspectivas de la OCDE sobre la economía mundial.
Mexico's macroeconomic fundamentals are solid and well administered, monetary policy is appropriate and independent and is handled in a responsible way, and the reforms are beginning to show results. Mexico is improving its capacity for growth from within. But much remains to be done to transform these reforms into inclusive growth. Much more must be done to end poverty.
The message of this Economic Outlook is that if policy makers can avoid the pitfalls of protectionism and seize the opportunity for collective fiscal action offered by still very low interest rates, combined with high-priority structural reforms, then the global economy can at last escape from the low-growth trap. That would indeed be a vindication of the OECD’s motto: better policies for better lives.
Much of Asia and the Pacific continues to outpace the rest of the world economy. In the last two decades, the economic performance of the region has been remarkable. Per capita income rose by 45 per cent between 1997 and 2014, lifting millions out of poverty. Trade has been the engine of this dynamic performance, but there are signs that it is sputtering.
The world economy remains in a self-fulfilling low-growth trap. Persistent growth disappointments are weighing on current expectations of future growth and feeding into weak trade, investment, productivity, and wages. Breaking out of this trap is essential if strong, sustainable, balanced and inclusive growth is to be achieved.
It is a pleasure to be in Washington to address the Bretton Woods Committee on an issue that concerns us all ─ global cyclical and structural risks. We are approaching a decade since the onset of the crisis and the global economy is still struggling to recover its cruising speed. There are several risks on the OECD’s radar. Let me briefly highlight those that we consider particularly dangerous.