China's economy will hold up this year and next, but challenges remain as the nation performs a balancing act, according to the Organisation for Economic Cooperation and Development.
The OECD is calling on Canada to do more to address risks associated with high-priced housing markets in cities such as Toronto and Vancouver, the latest worldwide body to draw attention to the country's real estate sector.
In 2017, India's GDP growth is expected to hit 7.3 per cent and 7.7 per cent the following year, slightly better lift than figures released by the Statistics Office last week, but largely in tandem with a World Bank report on robust growth in the country. The group also sees a potential red flag in housing markets because prices in some countries have risen to levels that have in the past preceded busts.
For the economy overall, the OECD estimates Canada's gross domestic product will grow by 2.8 per cent this year, double last year's performance of 1.4 per cent.
"Also, households are expected to continue to support their consumption by further reducing their saving rate".
However, the OECD warns the possibility of a large fall in house prices is the largest single risk facing the economy, which could reduce household wealth and spending and damage the construction sector, leading to significant job losses.
The OECD cut its estimates for the Mexican economy and now expects it to expand 1.9 percent this year and 2 percent in 2018 - roughly in line with with forecasts from economists surveyed by Bloomberg.
Next year the pace of growth is projected to slow to 3.1%, which is still 0.8 percentage points faster than forecast in autumn.
The OECD also warned that a growing backlash against globalization could trigger protectionist policies and undermine worldwide trade, leading to lower growth.
It said businesses and consumers are increasingly confident and employment, industrial production and trade are all recovering.
However, the OECD warns that major economies can not afford to be complacent.
- With files from The Associated Press.