Paris
(AFP) - President-elect Donald Trump's big-spending plan and tax cuts
are expected to help double the US economic growth rate by 2018, the
OECD said Monday.
The
US economy will grow by 2.3 percent in 2017 and 3.0 percent in 2018,
said the Organisation for Economic Cooperation and Development, revising
its earlier forecast.
That compares to gross domestic product growth of 1.5 percent this year, according to the OECD.
The Republican property tycoon's team has said he will devote $550 billion to rebuilding decrepit infrastructure.
The
incoming president also campaigned on promises for major corporate tax
cuts as part of a wide-ranging blueprint for the limping US economy.
"GDP
is projected to return to a moderate growth trajectory in 2017 and
strengthen in 2018, mainly due to the projected fiscal stimulus, which
takes effect particularly in 2018," the OECD said in its report.
"Indeed,
projected fiscal support will boost GDP growth by just under 0.5 and 1
percentage point in 2017 and 2018 respectively," it added.
Global
growth will also benefit if the US president-elect's avowed spending
and tax plans boost domestic investment and consumption, the Paris-based
body said.
It
now sees world GDP growth rising to 3.3 percent next year and 3.6
percent in 2018 but stuck to its 2016 forecast of 2.9 percent.
For
Britain, the OECD said it was less pessimistic than it was in September
when it halved its 2017 growth forecast in the wake of British voters
opting to leave the European Union.
It revised up its forecast for this year to 2.0 percent and to 1.2 percent for 2017.
"The unpredictability of the exit process from the European Union is a major downside risk for the economy," the report said.
The
OECD also suggested that fiscal initiatives could be the answer for
other governments to help drive the global economy after a "low-growth
trap" for the last five years.
"Durable
exit from the low-growth trap depends on policy choices beyond those of
the monetary authorities -- that is, of fiscal and structural,
including trade policies -- as well as on concerted and effective
implementation," OECD chief economist Catherine Mann said in the report.
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