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Organization for Economic Cooperation and Development (OECD) left unchanged its estimates for global economic growth for 2017 and 2018 compared to the previous report of the level of respectively 3.3% and 3.6%. This means a slight acceleration compared to last year, for which growth was at a level of 3%.

According to the Organization for Economic Cooperation and Development, however, the risk of rising protectionism, financial vulnerabilities, the potential volatility of heading in a different direction monetary policy and real activity outweigh the perspectives.

Expected economic improvement largely reflects the ongoing and expected fiscal and structural initiatives in major economies, most notably China, Canada and the US, as well as slightly expansionary stance for the euro area. Such policies are needed, as a catalyst for private demand to strengthen global activity and reducing inequality.

“The growth is still too weak and its benefits are too narrowly focused to seriously affect those that were hit hardest by the crisis and who have been abandoned”, said OECD Secretary-General Angel Gurría. “Now more than ever, the governments must take action to restore confidence of the people, while at the same time resist on focusing or the elimination of much of the progress achieved through serious international cooperation”, added he.

In USA, the domestic demand will strengthen, supported by the growth in household wealth and gradual increase in oil production. It expects GDP growth to rise by 2.4% this year and 2.8% in 2018, supported by expected fiscal expansion and despite higher long-term interest rates and a strong dollar. The assessment for next year still suffers downward revision from the previous forecast by 0.2 percentage points.

The Eurozone will continue suffering from moderate growth, which will be limited by some countries with persistently high levels of unemployment, especially among the young people, as well as the weakness in the banking sector. The forecasts for Eurozone GDP are to increase by an annual rate of 1.6% in 2017 and 2018, and the next year was made a downward adjustment of 0.1 percentage points.

In Japan, the fiscal incentives and better participation of women in the workforce will help increase the GDP this year to 1.2% from 1.0% in 2016. The prospects will depend on the extent to which the dualism of the labor market is reduced, and the growth of pay increase.

Forecasts for Chinese economy are for expansion by 6.5% this year and 6.3% in 2018, as it goes from dependence on external demand and heavy industry towards domestic consumption and services.

Higher commodity prices and weakening inflation support the recovery of Brazil and Russia of their deepest recessions.