By Daniel Hunter
David Kern, Chief Economist at the British Chambers of Commerce (BCC) believes that the latest data from the Organisation for Economic Co-operation and Development (OECD) highlights the need for measures to boost growth.
According to the OECD the global economy is moving forward, but divergence between countries and regions reflects the uneven progress made toward recovery from the economic crisis.
“The new OECD forecast signals mixed messages for the global economy, as well as the UK. While the economy should see stronger growth in 2014, it is notable that the OECD has downgraded its predictions for this year," said Kern
"It provides a glaring reminder that the growing optimism in the financial markets, with soaring share prices in many centres, is not yet reflected in the real economy.
“There is a stark contrast between the steady improvement in the US and the further setbacks in the eurozone, where the OECD expects an even bigger fall in GDP this year to -0.6%. This is unwelcome news for UK exporters that still rely too much on this region.
"We welcome the OECD's comments for a greater shift in government priorities towards infrastructure investment as this is something that the BCC has long campaigned for. The Chancellor must use next month's Spending Review to shift current spending towards capital investment, which will in turn help to drive a business-led recovery."
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