OECD: U.S. economy poised for comeback

 

The U.S. economy is set for a strong rebound after a harsh winter froze growth, according to the Organization for Economic Cooperation and Development (OECD).

The global group released its latest economic outlook Tuesday, and reported the U.S. economy is expected to grow 3.9 percent in the second quarter of the year.

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That’s a significant boost from the anemic 0.1 percent growth the U.S. economy actually recorded in the first quarter. Economic experts have pointed to the record-breaking cold winter as a major drag on the American economy at the beginning of 2014.

But with warmer months ahead, the OECD expects the U.S. economy will grow by at least 3 percent for the next two years. On average, it is projecting 2.7 percent growth in 2014, and 3.6 percent growth in 2015.

In fact, the OECD expects the U.S. will lead the way among advanced economies in the coming years.  The group’s 34 member nations are projected to grow just 2.2 percent in 2014, and 2.8 percent in 2015. The global economy is expected to grow 3.4 percent and 3.9 percent in those years, respectively.

However, the group downgraded its outlook for the global economy as emerging markets began to falter. It pared back its 2014 expectations by 0.2 percent compared to its November projections. The group noted that there remain “significant downside risks” across the globe that will temper growth, such as high unemployment and tighter credit.