US, Canada lead G7 nations in economic recovery, says OECD

The economies of the US and Canada will recover faster than their European counterpoints, said a new report by the Organization for Economic Cooperation and Development (OECD).

The US economy will grow at 2.9 percent in the first quarter and drop to 2.8 percent in the second, while the Canadian economy will grow at 2.5 percent, the report said.

"Our forecast for the first half of 2012 points to robust growth in the United States and Canada, but much weaker activity in Europe, where the outlook remains fragile," Pier Carlo Padoan, chief economist with the OECD, said in a presentation in Paris, reported the Financial Post. "We may have stepped back from the edge of the cliff, but there's still no room for complacency."

Japan will outpace both at over 3 percent – a surprising bounce back from last years natural disasters, said the Globe and Mail.

According to the Wall Street Journal, Europe's three largest economies — Germany, France and Italy — will shrink by 0.4 percent in the first quarter, followed by growth of 0.9 percent in the second.

Germany has the best chance at growth at 1.5 percent.

Reasons for the economic growth numbers in the US comes from the rebounding stock market and increased consumer confidence, reported the Los Angeles Times.

The OECD underlined keeping interest rates low and ensuring that central banks play key roles in maintaining economic growth.

“Monetary policy remains very supportive,” the OECD report said, reported Bloomberg. “This policy setting will be warranted for a considerable time to come, as will maintaining support through quantitative measures.”