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OECD warning about threat of housing bubbles worldwide

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No mention of the role their own insane macro-economic and trade advisories have played in re-leveraging the global economy since 2008 ofc. :rolleyes:



Rapid house price growth in countries such as the UK risks triggering a fresh economic downturn if prices fall, according to a top think tank, as it warned that Britain was on course for a hard Brexit.

The Organisation for Economic Co-operation and Development (OECD) said "buoyant" house prices in countries such as the UK, Norway, Canada and Sweden "raised concerns about financial stability".

The Paris-based think tank said house prices in these economies were elevated relative to rents, suggesting prices were overvalued.

Recent data suggest the UK property market is cooling. Halifax data on Wednesday showed house price growth was flat ahead of the general election.

The OECD said low interest rates across the advanced world had "led to vulnerabilities associated with rising debt levels" as it warned that there were signs of another housing "bubble" in Ireland.

"As past experience has shown, rapid house price gains can be a precursor of an economic downturn, especially when they occur simultaneously in a large number of economies," the OECD said in its latest global economic outlook.

The think tank said UK policymakers should also be poised to clamp down on lending on credit cards and personal loans if the "vibrant" pace of growth continued.

On the eve of the UK general election, the OECD warned policymakers to take steps to boost investment, build more houses, raise educational standards and foster "lifelong learning" in order to support jobs and growth over the medium term.

The OECD expects the UK economy to expand by 1.6pc in 2017. This is unchanged from its previous forecast in March and slightly below last year's growth rate of 1.8pc.

It said growth was likely to slow to 1pc in 2018 as unemployment creeps up and investment shrinks, which is also unchanged from its previous projection.



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