Baku, Azerbaijan, August 14
By Leman Zeynalova – Trend:
Continuing stability in the oil market remains a key-determinant for global growth, OPEC said in its August Oil Market Report.
“World economic growth has gained momentum and its dynamic is reflecting general improvements across the globe,” said the report.
Global growth is forecast at 3.4 percent for both 2017 and 2018, compared to 3 percent in 2016.
After increasing by only 1.7 percent in 2016, GDP growth in the countries of the Organization for Economic Co-operation and Development (OECD) has improved and is expected at 2 percent in both 2017 and 2018, according to OPEC.
“The major emerging economies are also either holding up well at a high growth rate (India), performing better than expected (China) or are recovering from recession (Russia and Brazil). With the ongoing growth momentum and an expected continued dynamic in 2H17, there is still some room to the upside,” said the report. “At the same time, challenges remain and are mainly related to global political developments and upcoming monetary policy decisions in the US and the Euro-zone.”
OPEC analysts point out that in the OECD, the US economy is rebounding from relatively low growth in 2016 of only 1.5 percent.
“A renewed increase in investments in the energy sector along with rising domestic consumption and improving exports are leading growth to 2.1 percent in 2017 and 2.2 percent in 2018,” said the report.
---
Follow the author on Twitter: @Lyaman_Zeyn