OECD sees improved growth in world's major economies

In a regular assessment of global economy, the Organization for Economic Cooperation and Development (OECD) on Wednesday saw improved growth prospects in major advanced economies thanks to low inflation and easy monetary policy.
"Low oil prices and monetary easing are boosting growth in the world's major economies," the OECD noted.
In the world's leading power, strong domestic demand combined with dollar appreciation, helped to bolster the American economic activities, the Paris-based think tank confirming its previous estimate of 3.1 percent this year and 3.0 percent in 2016.
Hailing "courageous decisions" of the European Central Bank to tackle deflation risks, the OECD raised its growth forecast in the eurozone by 0.3 percentage points for each year to stand at 1.4 percent in 2015 and 2 percent a year after.
"The euro area should benefit from low oil prices, monetary stimulus and euro depreciation, which combine to offer the chance to escape from stagnation," it said.
In the single-currency bloc, the organization predicted improved growth but with different speeds. In Germany, the eurozone's main powerhouse, the OECD raised its forecast by 0.6 percentage points to 1.7 percent this year and 0.4 percentage points to 2.2 percent in 2016.
Looking to French economy, it revised up growth estimation to 1.1 percent in 2015 against a previous estimate of 0.8 percent. Next year, the growth rate is set at 1.7 percent in line with government's targets.
According to the OECD's latest Interim Economic Assessment, Japan's growth is expected to increase by 1.0 percent this year and 1.4 percent next year, up 0.2 points and 0.4 percent respectively as "monetary and fiscal stimulus provide the impetus for faster near-term growth, but longer-term challenges remain."
As to China, it lowered its forecast by 0.1 percentage point to 7.0 percent this year.
"Lower oil prices and widespread monetary easing have brought the world economy to a turning point, with the potential for the acceleration of growth that has been needed in many countries," said OECD Chief Economist Catherine L. Mann.
"There is no room for complacency, however, as excessive reliance on monetary policy alone is building-up financial risks, while not yet reviving business investment," she added, recommending a more balanced policy approach that allows a full use of fiscal and structural reforms "to ensure sustainable growth and public finances over the longer term."