Global growth headed for six-year high - OECD

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The OECD's prediction assumes the economy will grow by 2.9 per cent in 2018 due to recovery in mining investment, new LNG production, and growing investment in non-mining sectors.

The OECD forecasts the global economy is set to grow 3.5 per cent this year though, which will be its best performance since 2011, with growth set to edge up to 3.6 per cent in 2018.

Italy's GDP is projected to grow by 1% in 2017 and then slip to 0.8% next year, considering "a fiscal retrenchment of about 1% of GDP in 2018, as required by European Union fiscal rules".

"We need a more inclusive, rules-based globalisation that works for all, centred on people's well-being", said OECD Secretary-General Angel Gurria in a press release accompanying the economic report.

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.

Japan's economy is estimated to expand 1.4 percent in 2017, up from a 1.2 percent increase projected in March, and 1.0 percent in 2018, up from 0.8 percent.

It said United Kingdom growth forecasts of 1.6 per cent in 2017 and one per cent in 2018 remained unchanged from its March prediction.

It will also help counter the build-up of other financial distortions that can accompany a sustained low-interest-rate environment.

"In the medium term, we foresee growth of 5 percent or more with reforms".

China's GDP growth is expected to be 6.6 per cent in 2017, within the government's growth bracket, but fall to 6.4 per cent in 2018.

"Economic growth [China] is projected to hold up in 2017 and 2018, partly thanks to the impact of earlier fiscal and monetary stimulus", the report said and added: "Infrastructure investment is picking up on the back of regional development initiatives, including the Belt and Road and the Beijing-Hebei-Tianjin Corridor", the report stated.

"Policies have supported private confidence and consumption, but household spending is projected to ease as the combination of a weakening labour market and higher inflation reduces real wage growth", it said.