Ten years ago the crisis and the collapse of the property boom hit Ireland harder than most. We all remember those images of unsellable ghost estates, headlines announcing the first recession in over 20 years, and stories of Irish people starting to see emigration as the only solution again.
I am delighted to be back in Brasília to present the OECD’s 2018 Economic Survey of Brazil. Let me begin by thanking the Ministry of Finance and Minister Meirelles for their support in the preparation of this Survey, and the Central Bank Governor Goldfajn for hosting us today.
It is a pleasure to be back in Santiago to present the 2018 economic survey of Chile. I would like to thank Minister Eyzaguirre, Ambassador Claudia Serrano and the Chilean authorities for their support in the preparation of this report.
I am delighted to open the World Government Summit and to deepen the strategic partnership between the Summit and the OECD. This Summit is an important opportunity to reflect on the deep governance transformations that are needed to make economies and societies more resilient and inclusive.
The global economy is in the midst of a digital transformation that is making waves across every sector of public and private activity. 40% of the world’s population is now connected to networks, up from 4% in 1995.
Over the years, these walls have seen us launch policy tools, instruments, standards and programmes to help countries harness the potential of globalisation. We see the OECD as a hub of globalisation. It has contributed to openness and greater international integration.
The global economy is now growing at its fastest pace since 2010, with the upturn becoming increasingly synchronised across countries.
The good news is that the global economy is gaining momentum. Global growth is accelerating from 3.1% in 2016 to a projected 3.6% this year and 3.7% next year. Over the past couple of quarters global GDP has actually been growing even faster than this, at an annualised rate of over 4%.
Nearly a decade after the worst economic crisis in living memory, our countries may finally be escaping the low-growth trap. Global growth is projected to rise from 3% in 2016 to 3.5% this year, and to 3.7% next year, with the upturn increasingly synchronised across the world. This is welcome news, but there is definitely no room for complacency.
There is no single factor that can explain the rise of protectionism in the US, Brexit, Catalan separatism and the strength of populist parties in the Netherlands, France, Italy, Germany, Austria and other countries.