OECD pushes up world 2016 forecast to 4.3%

Canada’s growth will be 2.2% this year and 2.1% in 2016.

PARIS — The Organization of Economic Cooperation and Development (OECD), a key international economic monitor, has nudged up its forecast for global economic growth this year amid low interest rates, inflation and oil prices in some major countries.

The OECD, a grouping of the world’s richest countries that acts like a think-tank, says loose monetary policy has helped underpin growth but warns a total reliance on that tool could strain the financial system.

The Paris-based organization now expects 4% annual growth in overall gross domestic product, up 0.1 percentage points from its last such forecast in November. The prediction for 2016 was pushed up 0.2 percentage points, to 4.3%.

The interim economic assessment concentrates on the world’s biggest economies including Brazil, India and China.

The OECD projects the US will grow 3.1% this year and by 3% in 2016. The UK is projected to grow at 2.6% this year and 2.5% next year. Canadian growth is pegged at 2.2% this year and 2.1% next year, while Japan’s growth is predicted to be 1% this year and 1.4% in 2016.

The euro area is projected to grow at a 1.4% in 2015 and a 2% in 2016.

China is expected to grow by about 7% this year and next. India will grow by 7.7% and 8%. Brazil’s economy is expected to shrink by 0.5% this year before returning to a 1.2% growth rate next year.

With files from PLANT

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