Global economy set to grow at its 'fastest in six years'

The global economy is set to grow at 3.5% this year; its fastest rate of growth since 2011, according to think tank OECD.

The latest forecast is a marginal improvement on OECD's March forecast which put forward a 3.3% global growth rate.

Despite the upgrade the think-tank's secretary general Angel Gurria urged caution. "Everything is relative. What I would not like us to do is celebrate the fact we're moving from very bad to mediocre.

"It doesn't mean that we have to get used to it or live with it. We have to continue to strive to do better."

Global growth continues to fall short of rates seen before the 2008-09 financial crisis, he added.

Elsewhere, in its forecast, the OECD noted that its previous UK growth forecasts of 1.6% in 2017 and 1% in 2018 remain unchanged, adding that: "[British] Households are expected to continue to support their consumption by further reducing their saving rate.

"Business investment is projected to contract amid the large uncertainty and because of lower corporate margins."

The OECD also said increased trade and investment flows had offset a weaker outlook in the US, while German growth is helping to boost the eurozone economy, with 2017 growth forecasts at 1.8% for the latter and 2.1% for the former.