KEY POINTS:
- Economic growth among G7 countries is expected to average 1.0 percent in 2020, according to OECD forecasts.
- However, the U.S. is expected to grow at the much faster rate of 2.0 percent in 2020.
- Higher U.S. growth is driven, in part, by higher projected levels of investment.
ECONOMIST CORNER:
The U.S. economy is expected to outperform its G7 peers in 2020, according to growth forecasts by the OECD. While the G7 as a whole is expected to average growth of 1.0 percent in 2020, the U.S. is expected to grow at a 2.0 percent rate. Differences in growth across G7 countries can be partially explained by differences in policies. In particular, the U.S. has pursued a series of policies, including tax reform and deregulation, that have made it a more favorable location for investment. The OECD also forecasts the U.S. will have the highest investment growth among G7 countries, at 2.1 percent in 2020.