USA protectionism poses sizable risk to Mexico growth

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The OECD has raised its 2017 GDP projection for Poland to 3.6 percent from 3.2 percent in a November forecast.

The new estimate would put Canada's economic growth this year ahead of the United States, which the OECD estimates will have GDP growth of 2.1 per cent this year.

The Paris-based economic think tank released a report Wednesday saying there should be further tightening of macro-prudential measures undertaken past year, echoing recent advice by the International Monetary Fund.

Lifted by improving global trade in Asia and fiscal stimulus, Japanese growth was seen at 1.4 percent this year before slowing to 1.0 percent next year, both slightly raised from the OECD's March estimates of 1.2 percent and 0.8 percent respectively.

The OECD's warnings come a week after the International Monetary Fund said a further tightening of macro-prudential and tax-based measures to mitigate speculative and investment activity should be considered.

While recovering trade and investment flows were supporting the improving economic outlook, Gurria said barriers in the form of protectionism and regulations needed to be lifted to ensure stronger growth.

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Britain's economy, however, is forecast to slow to a 1% growth rate in 2018 - after a 1.6% advance this year "owing to uncertainty about the outcome of the Brexit negotiations", the OECD said.

Global growth remains below long-term averages, however, and wages are not yet growing as much as hoped. That view is based on predictions for core inflation to slowly approach the target by the end of 2018.

The world economy is projected to grow 3.5% this year, the Paris-based think tank said in its semi-annual Global Economic Outlook report.

In its report, the OECD noted that unemployment in Ireland had fallen rapidly in recent years, declining below 7 per cvent this year, having been as high as 15 per cent in 2012.

However, it revised down its gross domestic product (GDP) forecast this year to 2.1 percent this year and 2.4 percent next year from previous estimates of 2.4 percent and 2.8 percent respectively.

Australian commodities linked to the Chinese economy remain an important source of income and growth, but also bring "uncertainty and risk".

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