OECD Predicts Pickup If Trump Enacts Plan
U.S. and global economic growth would be boosted by increases in spending and tax cuts promised by President-elect Donald Trump, but those gains would be lost if he pressed ahead with threatened tariff increases that triggered retaliation, the Organization for Economic Cooperation and Development said.
During his campaign, Mr. Trump pledged to boost infrastructure spending by as much as $1 trillion, although he didn't provide details on how that would be financed. He has also promised to cut corporate and personal-income taxes.
In its twice-yearly report on global economic prospects, the Paris-based research body said that , while the exact form it would take is uncertain,it expects Mr. Trump to offer some fiscal stimulus from the early months of his presidency, and that its likely scale would boost U.S. economic growth to 2.3% from 1.9% in 2017, and to 3% from 2.2% in 2018.
In turn, it said, rising U.S. demand for imports would raise global economic growth to 3.3% from 3.2% in 2017, and to 3.6% from 3.3% in 2018.
The OECD is the first international economic policy agency to publish an estimate of the likely impact of Mr. Trump's proposals.
UKIP's New Leader Targets Labor Voters
The UK Independence Party named a longtime deputy to Nigel Farage to lead the party, which has been riven by infighting since Britain's vote to leave the European Union.
Paul Nuttall, who won nearly two-thirds of the votes in an internal election, said the party must unite to keep pressure on Prime Minister Theresa May to make good on the Brexit vote.
Despite being on the winning side of thereferendum and successfully tapping into concerns about immigration and anger at established parties, UKIP has struggled to find its direction. Mr. Farage, who built a large following for opposing immigration from Europe, stepped down after the referendum.
Mr. Nuttall called his election a new beginning and said his ambition was for UKIP to replace the opposition Labour Party and be the "patriotic voice of working people."
"If UKIP ceases to be an electoral force, then there will be no impetus on Theresa May and her government to give us real Brexit, and what we will end up with is some sort of mealy-mouthed backsliding version which doesn't allow us to control our own borders," he said.
Unemployment Rate Touches 9-Year Low
Unemployment in Mexico fell to its lowest level in nine years in October amid strong private-sector job growth that has supported consumption and helped keep the economy expanding.
Seasonally adjusted unemployment fell to 3.6% of the workforce, from 3.8% in September and 4.4% a year before, helped in part by fewer people looking for work, the National Statistics Institute said. It was the lowest unemployment rate since December 2007.
Growth in jobs and wages, along with low inflation and increased consumer lending, have lifted private consumption, which in turn fueled the 2.3% growth in economic output in the first three quarters of the year.
(END) Dow Jones Newswires
November 29, 2016 02:47 ET (07:47 GMT)
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