BRUSSELS (Alliance News) – The Organisation for Economic Co-operation and Development said the global economy is set to grow more than previously projected in 2017 as the targeted public spending initiatives could catalyse activity and help to get the overall economy out of the low-growth trap.

The agency lifted the global growth projection for 2017 to 3.3% from 3.2%. For 2018, the Paris-based think tank forecast 3.6% growth.

“The global economy has the prospect of modestly higher growth, after five years of disappointingly weak outcomes,” OECD Secretary-General Angel GurrĂ­a said while launching the Global Economic Outlook.

The 35-country OECD area was projected to grow by 2% in 2017 and 2.3% in 2018, according to the Outlook.

Among the major advanced economies, activity was expected to accelerate in the US, due to an assumed easing of fiscal policy. The economy was projected to grow by 2.3% in 2017 and 3% in 2018.

The euro area was expected to expand 1.6% in 2017 and by 1.7% in 2018. In Japan, growth was projected at 1% in 2017 and 0.8% in 2018.

Copyright RTT News/dpa-AFX

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