OECD raises growth outlook for US, Europe in 2011

By the Associated Press | May 25, 2011 | 4:42 AM EDT

PARIS (AP) — The OECD says prospects for economic growth in the United States and Europe have improved and are predicted to hit 2.6 percent and 2 percent respectively this year.

In November the U.S. economy had been predicted to expand by 2.2. percent while eurozone countries were forecast to grow by 1.7 percent.

The Paris-based Organization for Economic Cooperation and Development's twice-yearly estimate released Wednesday puts real GDP growth among all its 34 member states at 2.3 percent in 2011.

The OECD says Japan's forecast worsened from 1.7 percent growth to a contraction of 0.9 percent this year because of the March earthquake.

Global growth is now pegged at between 4.25 percent and 4.5 percent this year.