The global economy is on course this year for its fastest growth in six years as a rebound in trade helps offset a weaker outlook in the United States, according to figures released Wednesday by the Paris-based Organization for Economic Cooperation and Development.
The world body, updating its forecasts in its latest Economic Outlook, says global growth is pegged for 3.5% this year before nudging up to 3.6% in 2018
That estimate for 2017 was not only a slight improvement from its last estimate in March for 3.3% growth, but it would also be the best performance since 2011.
While recovering trade and investment flows were supporting the improving economic outlook, the OECD said barriers in the form of protectionism and regulations needed to be lifted to ensure stronger growth, adding that improvement would also not be enough to satisfy people's expectations for better standards of living and reduce growing income inequality.
The OECD forecast U.S. growth of 2.1% this year and 2.4% next year, down from estimates in March of 2.4% and 2.8%, respectively.
OECD chief economist Catherine Mann attributed the downgraded outlook to delays in the Trump administration pushing ahead with planned tax cuts and infrastructure spending.
The weaker U.S. outlook was offset by slightly improved perspectives for the euro-zone, Japan and China.
