Against a backdrop of continued global buoyancy, the ongoing expansion of the OECD economy is entering its fifth year. Notwithstanding headwinds from high and volatile energy prices, it is projected to continue and even broaden this year and next, helped by supportive financial market conditions in a context of contained inflation. The US economy should decelerate marginally, with growth settling around its potential rate. In Europe, where the cycle has been lagging, the pace of activity is expected to gradually pick up. China is expanding rapidly and Japan’s economy, which has now fully recovered, remains vigorous.