OECD Expects U.S. Economic Growth Rate to Be 4.5 Percent in 2000

The Organization for Economic Cooperation and Development (OECD) said on Thursday that the economic growth rate in the United States is expected to attain 4.5 percent this year and 2.9 percent in 2001, higher than its previous forecasts.

In a report published on Thursday, the OECD revised its previous predictions that the growth rate in the U.S. would be 3.1 percent this year and 2.3 percent in 2001.

The OECD also suggested that the U.S. Federal Reserve raise again its interest rates in order to seek a sustained--and more moderate at the same time--growth.

The organization said that after taking into account the rise of the price of energy, inflation is low in the U.S.

It also said that demand in the U.S. continues to grow faster than supply, resulting in a high tension in the labor market, an expanding trade deficit, and higher underlying inflation risks.

The gross domestic product growth rate of the U.S. stood at 4.2 percent in 1999. OECD Expects U.S. Economic Growth Rate to Be 4.5 Percent in 2000.

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