OECD: countries still need to make reforms to improve growth

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China is now predicted to grow 6.8% in 2017 and 6.6% in 2018, both up two basis points from prior estimates, as the OECD's world growth forecast was kept at 3.5% for this year but hiked to 3.7% from 3.6% for 2018.

The Reserve Bank of Australia says the global economy is in better shape than it was a year ago and is positive news for the country.

"The projections reflect modest improvements in the global economy since the previous Economic Outlook in June 2017", the OECD said, noting that its former global growth forecast for 2018 was 3.6 percent. The organization maintained its Canadian outlook for 2018 at 2.3 per cent.

Also unchanged was the OECD's forecast for British economic growth to slow to 1.6 percent this year and 1.0 percent next year.

Even so, the risk of an Australian interest rate rise next year has become a hot topic among economists following the recent run of strong jobs growth.

Global growth momentum has improved and is more broad-based now, yet a self-sustained recovery is far from secured as inflation remains subdued and there exists an unmet need for structural reforms, the Organization for Economic Cooperation and Development said Wednesday.

The UK economy remains a laggard, however.

The OECD's latest Interim Economic Outlook report also said Japan's real gross domestic product is seen rising 1.6 percent in 2017, up 0.2 point from the June report. Uncertainty over the country's exit from the European Union will continue to hobble its economy, the OECD said.

Rising corporate profits should help strengthen business investment through 2018, but low wage growth and fiscal consolidation are likely to weigh on activity in 2018, when growth is expected at 1.2 percent. Global growth was 3.1% in 2016.

Brazil had its forecast for this year slashed by 0.1 point to 0.6%, while the prediction for next year was left unchanged at 1.6%.

However, the tax should lead to higher investment, productivity and growth in the long term, the OECD said.

"Strong import demand from China in the early part of 2017 has been a key driver of the higher than anticipated growth in the region", it said.