OECD sees U.S. growth accelerating through 2015

Fri Jun 13, 2014 9:34am EDT
 
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By Howard Schneider

WASHINGTON (Reuters) - The U.S. economic recovery should accelerate in coming months as an energy boom, steadily falling unemployment and a rebound in investment push growth to its fastest pace in a decade, the Organization for Economic Cooperation and Development said on Friday.

In its latest overview of the U.S. economy, the Paris-based group said U.S. gross domestic product would expand 2.5 percent this year, a touch below a forecast it released last month.

But it maintained its 3.5 percent growth projection for next year, which would be the strongest advance since 2004.

The OECD is more optimistic on U.S. growth than most private forecasters and some other international organizations, including the World Bank, which looks for growth in 2015 of only 3.0 percent.

The OECD said it saw several positive trends converging to make the recovery faster, more entrenched and more driven by private demand.

Low energy prices and continued low borrowing costs, coupled with record corporate stores of cash, should produce a surge of 10 percent in business investment in 2015, the OECD projected, while steadily falling unemployment would mean rising consumer demand and a firm recovery in housing over the next year.

"The U.S. is the bright spot in the world's recovery today," said OECD head Angel Gurria. "This has been building up," as the United States worked through the aftermath of the crisis and recession and set the stage for domestic demand and investment to take off.

"The U.S. is the one country that has its own growth built in."   Continued...

 
An aerial image shows a natural gas flare after sunset outside of Williston, North Dakota March 12, 2013. REUTERS/Shannon Stapleton