Global Economic Analysis and News of Note: Global Steel Production Increases Slightly
- Global steel production increased 0.2 percent to 134.1 million metric tons from July 2016 to August 2016 and was up 1.95 percent from August 2015. Raw-steel capacity utilization rose to 68.5 percent in August from 68.4 percent in July, but was down from 69.0 percent a year ago. According to the American Machinist, “China’s steel industry continues to be the world’s largest, and a centralized strategy to eliminate excess capacity there and consolidate ownership there seems to have paused, for now.”
- The Organization for Economic Cooperation and Development (OECD) announced last week that it had reduced its global economic growth estimates for this year and next. The OECD now thinks the global economy will expand just 2.9 percent this year, down from a previously-estimated three percent. It reduced the expected 2017 growth rate from 3.3 percent to 3.2 percent. The OECD also cut its estimate for the United States for 2016, to 1.4 percent from 1.8 percent, and its estimate for U.S. growth in 2017 to 2.1 percent from 2.2 percent. The OECD made similar revisions for Canada, cutting its 2016 expectations to 1.2 percent from 1.7 percent, and its estimate 2017 to 2.1 percent from 2.2 percent.