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 global economic outlook has grown darker than it was only a few months ago, but the US is doing well enough that its central bank should go ahead with its first rate increase since the financial crisis, the OECD yesterday said.