For now, weak investment in many economies is hindering an increase in consumption, job creation and wage rises, and eroding the prospects for long-term sustainable growth, according to the 'Economic outlook and interim global economic assessment' released in June 2015, by the Organisation for Economic Co-operation and Development (OECD), which gives the global economy a 'B-minus' grade. The reason for this poor performance, the report states, is that global growth in the first quarter of 2015 was weaker than in any quarter since the crisis.

OECD said that productivity growth continues to disappoint, reflecting, in part, a tepid business investment, which has weakened the spread of new technologies. The report does state, however, that good news is on the horizon. It projects that global growth will gradually strengthen towards pre-crisis levels by late 2016, as activity becomes more evenly shared across the major economies and overall external imbalances are less marked before 2007.


“The global economy is projected to strengthen, but the pace of recovery remains weak and investment has yet to take off,” said OECD's secretary-general, Angel Gurria. She sees the failure to trigger strong, sustainable growth as having real costs in terms of lost jobs, stagnant living standards in advanced economies, less vigorous development in some emerging economies and rising inequality nearly everywhere.

“But labour markets are gradually healing in the advanced economies, and risks of deflation have receded,” she said.

Among OECD’s findings, US gross domestic product growth is projected to be 2.0% in 2015, and 2.8% in 2016. Supportive monetary policy and lower oil prices should continue to support growth. Output in the Euro area is expected to rise by 1.4% this year, and 2.1% in 2016. Bolder-than-expected monetary easing by the European Central Bank has been accompanied by substantial depreciation of the euro, which should reinforce the positive demand effect of a pause in fiscal consolidation and the drop in oil prices.

Japanese growth is projected at 0.7% in 2015, and 1.4% in 2016. Lower oil prices, stronger exports reflecting the weaker yen and real wage gains are among the factors driving the country's recovery. In China, 2015 GDP growth is forecast to be 6.8% and 6.7% in 2016, as restructuring of the economy continues and services replace manufacturing and real estate investment as the main growth driver. Growth in India is expected to remain strong and stable in 2015 (at 7.3%) and 2016 (7.4%). While the recessions in Russia and Brazil are projected to give way to low but positive growth in 2016.