The Organisation for Economic Co-operation and Development on Wednesday upgraded its forecast of Japan’s economic growth for 2017, citing robust exports mainly to Asia and fiscal stimulus.
In its latest Global Economic Outlook report, the OECD said Japan’s real gross domestic product will likely rise 1.4 percent this year, up from 1.2 percent projected in March. The growth estimate for 2018 was raised to 1.0 percent from 0.8 percent.
“To sustain confidence in Japan’s public finances, setting out and implementing a more detailed consolidation path, including gradual increases in the consumption tax rate, is a priority,” the report said.
The OECD predicted that the U.S. economy will grow 2.1 percent in 2017 and 2.4 percent in 2018, thanks chiefly to fiscal stimulus measures.
But the figures are lower than the March projections of 2.4 percent and 2.8 percent, respectively, due to uncertainties over public investment by the administration of U.S. President Donald Trump.
For Britain, which decided to exit the European Union, the OECD projected GDP growth of 1.6 percent for this year and 1.0 percent for next year, both unchanged from earlier estimates, while private consumption is seen slowing.
China’s GDP is expected to increase by 6.6 percent in 2017, up from the previously estimated 6.5 percent, and by 6.4 percent in 2018, up from 6.3 percent, on the back of strong infrastructure investment.
The OECD revised up its global GDP growth estimate for 2017 to 3.5 percent from 3.3 percent, pointing to economic recoveries in farming and resources-rich countries. The growth estimate for 2018 was kept unchanged at 3.6 percent.