OECD: Trump's Presidency Will Double U.S. Growth Rate

The Organization for Economic Cooperation and Development (OECD) has predicted in a new report that due to Donald Trump's economic plans, including increased public spending and tax cuts, the economic growth rate of the United States will "double" by 2018. This organization has revised its previous forecast, stating that U.S. economic growth will reach 2.3% in 2017 and 3% in 2018. According to the OECD, the increase in the U.S. Gross Domestic Product (GDP) this year has been about 1.5%. According to Agence France-Presse, advisors and Donald Trump's transition team have announced that he will allocate $550 billion to "rebuild America's infrastructure." In addition, Mr. Trump has promised to reduce corporate taxes to stimulate more economic activity. The OECD report states, "It is expected that GDP will have moderate growth in 2017 and strong growth in 2018. The main reason for this is the stimulative monetary policies of the incoming government, which will be felt in 2018. Under the influence of these stimulative policies, GDP is expected to increase by about half a percent in 2017 and about one percent in 2018." The organization adds that the global economy will also benefit from the elected president's plans to increase public spending and reduce taxes, leading to increased consumption and investment in the U.S. According to the OECD's forecast, the global economic growth rate will rise to 3.3% in 2017 and 3.6% in 2018, but the growth rate for this year will remain at the previous forecast of about 2.9%. The OECD has also become slightly more optimistic about Britain. The organization had previously assessed that Britain's economic growth would be halved due to the Brexit process. However, in its new assessment, it predicts growth of about 2% this year and about 1.2% for next year (2017). However, the report also states that "the unpredictability of the Brexit process will be a significant negative factor for the country's economy." The OECD has added that adopting stimulative monetary policies by governments could invigorate the global economy, which has seen low growth rates over the past five years: "A secure and sustainable exit from the period of low economic growth will depend on macroeconomic policies beyond the powers of central banks, such as trade policies or structural changes in financial relations." The OECD is an international organization based in Paris, with 34 member countries committed to upholding the principles of democracy and free economy. Among its members are the United States, the United Kingdom, France, Switzerland, Germany, and Canada. The organization's goal is to benefit from the good experiences of other countries, find answers to current questions regarding financial and economic issues, and coordinate domestic and international policies among its members.