Published: Tue, March 13, 2018
Global | By Marsha Munoz

The OECD estimates that Argentina will grow 3.2% this year and next

The OECD estimates that Argentina will grow 3.2% this year and next

But 2019 is unchanged at 1.1%, compared to the OECD's most recent forecast in November, and both years are down on the 1.7% growth recorded for 2017. The think tank said United States tax cuts and spending increases, combined with fiscal stimulus in Germany, were the main reasons for the improved outlook.

The Canadian economy will grow even faster than previously expected this year, according to the OECD, as strong global growth spurs investment and trade.

The Organisation for Economic Cooperation and Development's call comes amid a deepening row over U.S. tariffs on steel and aluminium that has brought on fears of a global trade war.

Canada's growth is expected to slow to two per cent next year, but that's also better than previous expectations, which were for 1.9 per cent as of three months ago. While stronger growth is being called for, it does warn of risks to growth and to jobs if trade tension escalates further.

"I think it is very important to avoid escalation and to initiate a strengthening in the global dialogue to solve not only the problem for steel but to avoid bigger repercussions in terms of trade".

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"Safeguarding the rules-based global trading system is essential to prevent the longer-term harm to growth prospects that could arise from a retreat from open markets", it said.

Last week, President Trump signed controversial orders imposing heavy tariffs on steel and aluminium.

He said: "Investment is coming back, and so this is very good news for good new for jobs and growth across the economies".

Among other hot economies, stronger growth in France and Germany boosted the outlook for the broader euro zone to 2.3 per cent for this year and 2.1 per cent in 2019.

The United States is now projected to grow by 2.9% in 2018 and 2.8% in 2019.

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The report forecast a gradual rise in price and wage inflation in major economies, accompanied by a "normalisation" of interest rates away from the near-zero lows they have maintained in many countries since the crash of 2008.

Growth is steady or improving in most G20 countries and the expansion is continuing.

Economists put Britain's growth at an annual pace of 1.5% over the next two years.

The world economy is now forecast to grow by 3.9% in 2018 and also in 2019, up from prior forecasts of 3.7% for 2018 and 3.6% for 2019.

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