Global growth will pick up faster than previously expected in the coming months as the Trump administration's planned tax cuts and public spending fire up the U.S. economy. The OECD's twice-yearly Economic Outlook estimated global growth would accelerate from 2.9 percent this year to 3.3 percent in 2017 and reach 3.6 percent in 2018. Laura Frykberg reports.
A better than expected forecast - but still a little cloudy. OECD figures show growth in China slightly slowing next year. Thanks to strong import demand in the U.S. However, whether that will last - remains murky. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "You've got President Trump coming in. He's known to be wanting to tear up a number of free trade agreements - and generally a really protectionist tone creeping in." His election could help the U.S. domestically though. The OECD has increased the country's growth forecast in 2017 to 2.3 percent. Attributing it to Trump's plan to cut taxes and boost infrastructure spending. That - it says - could reduce unemployment. And accelerate global growth to 3.3 percent next year and even higher the year after. But that optimism comes with a warning. (SOUNDBITE) (English) OECD SECRETARY-GENERAL ANGEL GURRÍA SAYING: "Low interest rates have opened a window of opportunity, by reducing government's debt service costs, and increasing the so-called fiscal space. It is a window that may not remain open for long." In Britain there is a bit of hope too. It's economy is predicted to grow 2 percent this year. Although again - long term it looks rather gloomy. By 2018 - growth is expected be half that.