S. Korea to maintain 3% growth for 2018-2019: OECD

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It said that the tax cuts in the USA will boost business investment and could add as much as 0.75 percentage point to growth this year and next in the world's largest economy.

The UK trails last out of the G20 economies in OECD growth projections for both 2018 and 2019, with Britain's rate of GDP increase declining in both years while many other countries surge ahead.

"Stronger investment, the rebound in global trade and higher employment are helping to make the recovery increasingly broad-based".

"We think the stronger economy is here to stay for the next couple of years", acting OECD chief economist Alvaro Pereira told Reuters."We are getting back to more normal circumstances than what we've seen in the last 10 years".

The OECD also warned of risks linked to the Group of 20 countries having total debt amounting to over 200 per cent of economic output, and stock valuations being at their highest since the early part of the century.

The world's largest economy is expected to grow 2.9 percent this year and 2.8 percent next year.

Financial markets have been hit by fears of a trade war following U.S. President Donald Trump's move to slap tariffs on steel and aluminum imports.

On Britain, the OECD struck a particularly cautious note, pencilling in growth of only 1.3 per cent this year.

The Paris-based organisation said the world economy was on course to expand at an annual pace of 3.9% over the next two years. That was higher from a November forecast of 1.2 percent due to the broader global improvement.

"In Japan, where underlying inflation and inflation expectations remain low, current stimulus measures need to be continued to help achieve the inflation target", the OECD said.

With the euro area economy resilient, rising inflation would allow the European Central Bank to reduce its bond purchases gradually this year and subsequently phase out its negative interest rate policy, the OECD said.

The report revised 0.4% higher its predictions for United States growth - hitting 2.9% this year.

"Governments should avoid escalation and rely on global solutions to resolve excess capacity in the global steel industry".

"Safeguarding the rules-based worldwide trading system will help to support growth and jobs", it said.

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