OECD Raises 2012 Growth Forecasts for G7 Nations

Rich nations will outstrip growth forecasts for the first half of 2012 but leading European economies will lag behind the United States, the OECD said on Thursday.

The Organization for Economic Cooperation and Development strongly upgraded some of its forecasts in an upbeat view of the recovery from financial crisis and the European debt crisis.

But this improved outlook is fragile, notably because of the easing but still unresolved debt strains in the Eurozone and owing to the rise in the price of oil.

"Growth is expected to be firmer through the first half of the year," the OECD said in a report focused on the economic outlook in the rich G7 nations.

"Short-term prospects have improved relative to the situation prevailing in late 2011, but indicators still suggest a fragile recovery," the OECD said.

The new forecast for the first half of 2012 pointed to a "decoupling" between North America which should see "robust growth", and Europe where "the outlook remains weak", the organization said.

The United States should see growth in the first quarter of 2012 reach 2.9 percent on a 12-month basis, up from an earlier forecast of 1.7 percent, and grow 2.8 percent in the second quarter, up from 1.9 percent.