Global watchdog pushes up forecast for world economic growth this year to 4 per cent

PARIS – A key international economic monitor has nudged up its forecast for global economic growth this year amid low interest rates, inflation and oil prices in some major countries.

The Organization of Economic Cooperation and Development, a grouping of the world’s richest countries that acts like a think-tank , says loose monetary policy has helped underpin growth but warns a total reliance on that tool could strain the financial system.

The Paris-based organization now expects 4 per cent annual growth in overall gross domestic product, up 0.1 percentage points from its last such forecast in November. The prediction for 2016 was pushed up 0.2 percentage points, to 4.3 per cent.

The interim economic assessment released Wednesday concentrates on the world’s biggest economies including Brazil, India and China.