Global economic growth is expected to pick up faster than previously thought in coming months due to expected tax cuts and public spending in the U.S. – this according to the Organization for Economic Cooperation and Development. In its most recent economic outlook report, the OECD estimates that global growth will accelerate from 2.9 percent this year to 3.3 percent in 2017 and 3.6 in 2018.
As reported by the New York Times, the Paris-based organization has become more optimistic regarding America’s economic outlook, with 2.3 percent growth forecasted for next year.
U.S. growth is expected to pick up further in 2018 to reach 3 percent – that would represent the fastest pace of U.S. economic growth since 2005. The forecast goes on to indicate that by 2018, U.S. unemployment, presently 4.6 percent, would have fallen still further.
As the labor market tightens, inflation pressures will build. Correspondingly, U.S. interest rates are expected to be meaningfully higher by 2018. An improving U.S. economy would help offset softness still expected in the balance of the world, including in Great Britain.
