Updating its outlook for G20 economies, the Organisation for Economic Cooperation and Development raised its global growth forecast for both 2018 and 2019 to 3.9 percent - the highest since 2011 - from a previous estimate of 3.6 percent for both years.
The world economy will expand at its fastest pace since 2011 this year, but the United Kingdom will continue to lag, according to the latest forecasts from the Organisation for Economic Co-Operation and Development (OECD). Previously the OECD had estimated three hikes would suffice this year.
"I think it is very important to avoid escalation and to initiate a strengthening in the global dialogue to solve not only the problem for steel but to avoid bigger repercussions in terms of trade".
Japan's economy will likely grow 1.5 percent this year before slowing to 1.1 percent next year.More news: Xiaomi pushes MIUI 9 Stable Global ROM to all major devices
In its interim economic outlook report, the OECD projects 3.9 percent global growth for 2018 and 2019, up from the November forecasts of 3.7 percent and 3.6 percent, respectively.
By contrast, growth in the global economy is expected to strengthen further from its six-year high of 3.7% in 2017 to reach 3.9% in 2018 and 2019.
Globally, the OECD expects a modest increase in inflation amid tightening labor markets, which will reduce dependence on accommodative monetary policy.
"Safeguarding the rules-based global trading system is essential to prevent the longer-term harm to growth prospects that could arise from a retreat from open markets", it said.More news: Taro Daniel took advantage of Novak Djokovic not being at his best
The OECD's acting chief economist said any trade war resulting from US President Donald Trump's planned import duties on steel and aluminium products, would prove "fairly damaging".
The raised forecast was in part due to expectations that US tax cuts would boost the world's biggest economy, it said.
It said the eurozone would also grow by more than originally expected - at a rate of 2.3%.
The OECD forecast the USA economy would grow 2.9 percent this year and 2.8 percent in 2019, with tax cuts adding 0.5-0.75 percentage points to the outlook in both years.More news: Asus ZenFone 4 Android 8.0 Oreo Update Now Rolling Out