Political uncertainty in many countries risks hampering a modest global economic expansion this year and next, the OECD warns.
In an update of its economic outlook released in November, the Organisation for Economic Co-operation and Development is sticking with a forecast of 3.3 per cent growth in 2017 and 3.6 per cent in 2018.
That follows global growth of three per cent last year.
The organisation says in the report released in Paris on Tuesday while confidence has improved, consumption, investment, trade and productivity are "far from strong".
At the same time, many countries have new governments, face elections this year or rely on coalition or minority governments.
"Falling trust in national governments and lower confidence by voters in the political systems of many countries can make it more difficult for governments to pursue and sustain the policy agenda required to achieve strong and inclusive growth," the OECD said.
"These tensions lead to less predictable outcomes, including on progress in implementing policy reforms."
The report provides no fresh forecast for Australia after releasing a separate report on the nation last week where it said while the country has proved very resilient to a variety of negative events, it did warn of the potential danger from ballooning house prices.
The Paris-based institution reiterated the warning on Tuesday, not just for Australia, but also for Canada, Sweden and the UK, which have all endured a similar housing experience.
"As past experience has shown, a rapid rise of house prices can be a precursor of an economic downturn," it says.
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