OECD sees no serious worries about global growth prospects

<p>Kia ora, </p><p>Welcome to Wednesday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news the OECD sees global growth back on track.</p><p>But first up today, there was another <a href="https://www.globaldairytrade.info/en/product-results/" target="_blank"><strong>dairy auction</strong></a> overnight and this one was positive in a minor but gratifying way. Overall prices rose +1.0% in USD terms and +2.4% in NZD terms, benefiting from the -1.5% fall in the NZD since the previous auction. This time prices were led by the WMP price which was up +2.2% since last time. Volumes sold through this channel were stable, similar to the prior 15 events, but far less than the volumes offered at the year-ago event - and prices are +30% higher than then.</p><p>In China, Evergrande has come under even more pressure after ratings agency S&P said the company was likely to default (NSS). Their debts are huge and Western bond funds have lots of it on their books. But more analysts now doubt an Evergrande failure will seriously threaten the Chinese economy. The expectation of a Beijing bailout of some sort is high. Not everyone agrees: the RBA noted in <a href="https://www.rba.gov.au/monetary-policy/rba-board-minutes/2021/2021-09-07.html" target="_blank"><strong>minutes</strong></a> released yesterday that the risks to China’s outlook for growth and financial stability are rising.</p><p>In the US, August <a href="https://www.census.gov/construction/nrc/pdf/newresconst.pdf" target="_blank"><strong>housing start data</strong></a> was positive, reversing the unexpected July fall which was revised up.</p><p>The Indonesian central bank <a href="https://www.bi.go.id/id/publikasi/ruang-media/news-release/Pages/sp_2324121.aspx" target="_blank"><strong>reviewed</strong></a> its policy setting late yesterday and left everything unchanged. It is sticking to its growth forecast of 3.5 to +4.3% thi