In a forecast released today, the Organisation for Economic Cooperation and Development (OECD) projected favorable economic growth in 2017 and 2018.
The OECD is an international economic organization made up of 35 member countries, including the United States.
Key to these growth projections is the promised $550 billion infrastructure investment from President-elect Donald Trump. This is about five times as much as President Obama’s 2009 American Recovery and Reinvestment Act (ARRA) allocated for infrastructure spending.
Owing to economic activity generated by renewed infrastructure investments, the OECD projects the annual Gross Domestic Product (GDP) to climb to 2.3 percent in 2017 and 3 percent in 2018.
Passing the $550 billion investment would represent an about-face for House and Senate Republicans, who bristled at infrastructure bills under President Obama, even though Standard and Poor’s estimates that infrastructure spending can generate up to $1.30 per dollar invested.
This year, American GDP growth is expected to hit just 1.5 percent.