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OECD predicts fastest global growth in six years
08 June 2017, 01:56 | Virginia Benson
OECD latest international body to call out Canada on housing markets
Australian economic growth will reach a rate of nearly three per cent by the end of 2018 and an improving environment will prompt the Reserve Bank to start raising interest rates later this year.
In its economic outlook, the OECD said: "Private consumption growth is projected to slow, as higher inflation holds back real earnings, but a weaker growth outlook should mitigate the extent of price pressures in the economy".
German growth though, helped boost the Eurozone economy, with forecasts at 1.8 per cent for both this year and next, up from 1.6 per cent for 2017 and 2018.
The Paris-based OECD, whose members include Canada, the United States and numerous world's richest economies, said businesses and consumers are increasingly confident and employment and trade are recovering.
The new estimate would put Canada's economic growth ahead of the USA, which the OECD estimates will have GDP growth of 2.1 per cent this year.
"As the economic outlook improves and inflation approaches the target by end-2018, the degree of monetary stimulus is projected to be somewhat reduced, with the asset purchase programme being tapered off gradually over 2018 and the deposit rate being increased by 15 basis points towards the end of 2018", the report said.
Earlier this week, the World Bank also edged up Turkey's 2017 growth forecast from 3 percent to 3.5 percent.
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