Global Economic Analysis and News of Note: OECD Sees Improved Growth For Europe, Asia, Canada
- The Organization for Economic Cooperation and Development (OECD) released its updated growth estimates for the world economy last week. The OECD left its predictions for global economic growth at 3.5 percent for this year but increased its predictions for 2018 from 3.6 percent to 3.7 percent. It also did not alter its expectations for U.S. economic growth this year (2.1 percent) or next year (2.4 percent). The OECD increased its outlook for Europe, parts of Asia, and Canada, however. As The Toronto Star reported, the OECD now expects the euro area to grow at a 2.1 percent rate this year (up from its 1.8 percent growth prediction, which was issued in June) and at a 1.9 percent pace in 2018 (up from the earlier estimate of 1.8 percent). The OECD expects the Japanese economy to expand by 1.6 percent in 2017 and 1.2 percent in 2018 and China’s GDP to increase by 6.8 percent this year and 6.6 percent in 2018. India’s economy will grow even faster than China’s next year, the OECD predicted. The think tank also said it believes the Canadian economy will expand by 3.2 percent this year, instead of the 2.8 percent it originally predicted, and by 2.3 percent in 2018.