OECD warns of ‘wild card’ risk to global economy

A modest recovery underway in the global economy is at risk from economic nationalism and diverging central bank policies, the Organisation for Economic Cooperation and Development (OECD) has said as it forecast only a slight pick-up in growth.

The Paris-based OECD estimated global economic growth would run at 3.3% this year before reaching 3.6% in 2018, unchanged from its last estimates in November.

OECD chief economist Catherine Mann said higher interest rates in the US could unleash damaging volatility on financial markets for some borrowers while potentially pushing the dollar higher.