Business

OECD raises Canada's economic growth outlook, now best in the G7

The Organization for Economic Co-operation and Development has raised its expectations for economic growth in Canada this year compared with a June forecast.

Paris-based economic think tank kept its global projection steady

Workers assemble a motor in the Pratt & Whitney factory in Longueuil, Quebec. (Radio-Canada)

The Organization for Economic Co-operation and Development has raised its expectations for economic growth in Canada this year compared with a June forecast.

The Paris-based economic think tank says it now expects the Canadian economy to grow by 3.2 per cent this year, best in the G7.

That is up from its forecast in June for growth of 2.8 per cent.

The OECD maintained its Canadian outlook for 2018 at 2.3 per cent.

Meanwhile, the organization's outlook for global economic growth was unchanged at 3.5 per cent for this year and up slightly at 3.7 per cent for 2018, compared with 3.6 per cent in its previous forecast.  

It also now thinks that the eurozone will grow by 2.1 per cent this year, 0.3 percentage point more than its previous prediction in June. That means the OECD is expecting eurozone growth this year to match the U.S. rate, which it left unchanged.  

And next year, it's forecasting growth of 1.9 per cent for the eurozone, 0.1 percentage point more than previously thought, but below its 2.4 pe rcent projection for the U.S. The big three eurozone economies — Germany, France and Italy — all saw upward revisions.

Expectations for the U.S. were unchanged at 2.1 per cent this year and 2.4 per cent next year.