OECD raises eurozone economic growth estimates

(AGI) Rome, Mar 18 - Organisation for Economic Co-operation andDevelopment (OECD) growth estimates for Italy and the eurozonehave been revised upwards. Low oil prices and the effects ofthe European Central Bank (ECB) quantitative easing measuresare helping Europe to escape stagnation. Economic prospects forChina and Brazil have fallen, but the U.S. is recovering well.OECD's Economic Assessment analysis predicts a 0.6 percent risein GDP, 0.4 points higher than the 0.2 increase foreseen inNovember's economic outlook. Growth estimates for 2016 are fora 1.3 percent rise, compared with November's forecast of 1percent. Projections for

(AGI) Rome, Mar 18 - Organisation for Economic Co-operation andDevelopment (OECD) growth estimates for Italy and the eurozonehave been revised upwards. Low oil prices and the effects ofthe European Central Bank (ECB) quantitative easing measuresare helping Europe to escape stagnation. Economic prospects forChina and Brazil have fallen, but the U.S. is recovering well.OECD's Economic Assessment analysis predicts a 0.6 percent risein GDP, 0.4 points higher than the 0.2 increase foreseen inNovember's economic outlook. Growth estimates for 2016 are fora 1.3 percent rise, compared with November's forecast of 1percent. Projections for the eurozone are for 1.4 percentgrowth in 2015, higher than the 0.9 percent seen in 2014. Thearea is expected to grow 2 percent in 2016, rather than the 1.7percent forecast in November. Growth in Germany is acceleratingparticularly fast, and is expected to rise 1.7 percent in 2015,after ending 2016 1.6 percent higher. Projections are for 2.2percent growth in 2016. Growth estimates for France were alsorevised upwards, after growing 0.4 percent in 2014, the economyis expected to grow 1.1 percent in 2015 and 1.7 percent in2016. The November forecast was for growth of 0.8 percent and1.5 percent respectively. "Lower oil prices and widespreadmonetary easing have brought the world economy to a turningpoint, with the potential for the acceleration of growth thathas been needed in many countries," said the OECD. This hadprovided an opportunity for the eurozone to avoid a prolongedperiod of stagnation, weak jobs markets and excessively lowinflation. The organisation sees the Juncker plan as anopportunity to increase investments, key to cyclical recoveryin the euro area, and necessary for increasing productivity inthe medium term. It also offers an important chance to catalyseprivate investments with public support within current budgetconstraints. By acting together, the European Union (EU)members states could have a greater impact on demand and set uphigh-yield investment projects, but the support andcontributions of the national governments would be crucial. Theefficacy of the plan relies on market legislation reform andcross-border legislative frameworks to guarantee effectiveimplementation. Generally-speaking, growth prospects for themain advanced economies appear to be improving slightly, butthe forecasts stress the fact that global economic growth willbe moderate rather than rapid, and subject to risks relative tofinancial stability.. .