Indian Economy To Grow 7.7 percent In FY'15: OECD

"With obstacles emerging to the adoption of growth- friendly structural reforms, maintaining rapid growth will pose a difficult challenge, notwithstanding the strong current momentum," the report noted.

China is anticipated to expand 7 percent this year as well as next year.

"Brazil's economy is expected to shrink by 0.5 percent in 2015 before returning to a 1.2 percent growth rate in 2016," the report said.

According to OECD, low oil prices and monetary easing are boosting growth in the world's major economies, but the near-term pace of expansion remains modest, with abnormally low inflation and interest rates pointing to risks of financial instability.

"The widespread easing of monetary policy over the past few months, affecting countries accounting for roughly half of global GDP, has resulted in improvements in global financial conditions. A number of the associated moves in exchange rates have been large, raising the question of overshooting in some cases," it said.

Strong domestic demand is driving growth in the U.S., which, combined with dollar appreciation, is adding to demand in the rest of the world, OECD said.

"The euro area should benefit from low oil prices, monetary stimulus and euro depreciation, which combine to offer the chance to escape from stagnation," it added.
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