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OECD says global growth to pick up

Staff Writer |
Global economic growth is set to gain momentum modestly this year and next, the Organization for Economic Cooperation and Development (OECD) said.

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In its Interim Economic Outlook report, the Paris-based think tank projected global growth of 3.3 percent for this year and 3.6 percent for next year. Thus, the global growth rate is seen recovering from 3 percent in 2016.

The outlook was unchanged from projections made in an OECD report in November.

"Disconnect between financial markets and fundamentals, potential market volatility, financial vulnerabilities and policy uncertainties could, however, derail the modest recovery," the OECD said.

"The positive assessment reflected in market valuations appears disconnected from real economy prospects."

The growth projection for the U.S. for this year was raised to 2.4 percent, while the forecast for next year was trimmed to 2.8 percent.

Eurozone's growth forecast for this year was retained at 1.6 percent, but the outlook for next year was cut to 1.6 percent.

France's growth forecast for next year was trimmed to 1.4 percent and Canada's projection was lowered to 2.2 percent.

The U.K., which is set to start the process of exiting the European Union late March, had its growth projection for this year raised by four percentage points to 1.6 percent. The forecast for next year was retained at 1 percent.

Japan's growth forecast for this year was raised to 1.2 percent and the outlook for next year was retained at 0.8 percent.

Among the main economies, India, where the government implemented a drastic measure of currency demonetization in November, was the only one to see its growth forecast for the year reduced. Yet, the Indian economy would continue to remain the fastest growing in the entire group in both years.

India's growth projection for the financial year ending on March 31 was lowered by three percentage points to 7.3 percent. The outlook for the fiscal year 2018 was retained at 7.7 percent.

China's growth forecast for this year was raised to 6.5 percent and for next year to 6.3 percent. Brazil is set to witness nil growth this year and 1.5 percent expansion next year, the report said.

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