Paris: The global economy is set for 4.75% growth this year, with emerging markets leading the way, the OECD said in upgraded forecasts on Wednesday, but said the European debt crisis is a threat.
The organization also warned that possible overheating in emerging economies could be raising risks.
The 30 industrialized members of the OECD were on course for growth of 2.70% this year and about 2.80% next year, an improvement from 2.50% forecast in November.
The Organization for Economic Cooperation and Development (OECD), a Paris-based group of 30 developed world nations, also said that global imbalances -- seen as one of the causes of the global economic crisis -- are widening again.
“Growth is picking up in the OECD area -- at different speeds across regions -- and at a faster pace than expected in the previous Economic Outlook,” the OECD said in a twice-yearly report on the global economy.
But it warned that “risks to the global recovery could be higher now, given the speed and magnitude of capital inflows in emerging-market economies and instability in sovereign debt markets.