That was the takeaway Wednesday from the latest economic outlook by the Paris-based. The group, made up of 38 member countries, raised its growth forecast this year to 2.7 per cent from an estimated 2.2 per cent in November and foresaw only a tiny acceleration to 2.9 per cent next year.
It was a more optimistic outlook than the World Bank gave Tuesday, citing similar risks in its expectation for 2.1 per cent global growth this year. That was still an upgrade from its January forecast of 1.7 per cent. The OECD sees inflation declining to 5.2 per cent by year end from 7.8 per cent at the end of last year in the Group of 20 countries that make up more than 80 per cent of the global economy. The U.S. should see annual inflation of 3.2 per cent by the last quarter of this year, and Europe’s rate should fall to 3.5 per cent.