By Mark Holan, editorial director, ARTBA
President-elect Donald Trump’s proposed tax cuts and infrastructure investment will boost U.S. and global economic growth over the next two years, according to a Nov. 28 report from the Organization for Economic Cooperation and Development (OECD). The Paris-based research organization also warned that growth would be stunted if Trump pursues tariff increases as part of a protectionist trade policy.
“The new Administration will begin implementing its policy priorities next year and in this context the fiscal stance is projected to become more expansionary as public spending and investment rise, while taxes are cut. This will provide a boost to the economy, particularly in 2018,” the OECD said in its latest Global Economic Outlook.
Trump has said he wants to invest up to $1 trillion on infrastructure, including transportation construction, though details of how he would pay for it remain murky. The OECD report does not directly address transportation infrastructure investment in the U.S.
The report estimates U.S. economic growth could hit 2.3 percent in 2017 and 3 percent in 2018. Global economic growth would be 3.3 percent in 2017 and 3.6 percent in 2018.