As Secretary of the Organization for Economic Cooperation (OECD), I am pleased to share with CNBC viewers that the outlook for the global economy is slightly better than it was three months ago.
The fact is, global economic uncertainty has been on the rise in recent months, as trade tensions and geopolitical risks have threatened to derail growth prospects. However, recent data shows that the global economy is regaining its footing, with a number of key indicators showing signs of improvement.
For instance, manufacturing activity in many countries has rebounded from its mid-year lows. Global industrial production rose by 0.9 percent in August compared to July, while manufacturing output increased by 2.2 percent over the same period. This marks a marked improvement from earlier this year when production levels were languishing near multi-year lows due to trade disputes and other economic headwinds.
In addition, there have been positive developments on the trade front as well. The United States and China recently announced a Phase One deal that would reduce tariffs on Chinese imports and provide more access for US companies into China’s markets. This could be an important first step towards resolving some of the major trade disputes between these two countries – which have had a particularly large impact on global economic growth over the past year or so – and could help spur a longer-term recovery in international commerce going forward.
Finally, consumer sentiment has also improved in recent months, suggesting that households are feeling more confident about their financial prospects moving forward despite ongoing macroeconomic challenges across many parts of the world.
This all adds up to an encouraging picture of where things stand today – one that should give hope to both businesses and consumers alike that brighter days are ahead for our collective economic future despite all of the challenges we’ve faced this year..
Overall, I am encouraged by these developments and believe that they present us with an opportunity to take meaningful steps towards restoring stability and prosperity in our global economy over time – an outcome which will ultimately benefit us all!