OECD: Economic Growth Accelerates &Nbsp; Inflation May Be Worrying.

The Organization for Economic Cooperation and Development (OECD) released an optimistic mid-term assessment report on Tuesday.

The report said that in addition to earthquakes

OECD chief economist Pier Carlo Padoan told the Dow Jones newswires (Dow Jones Newswires) that OECD was relatively optimistic: the economic recovery seemed to be stronger.

He pointed out that the Group of Seven (G7) is expected to reach an economic growth rate of about 3% in the first half of this year.

But he said that it may be at the beginning of the "second round effect" of inflation, because the rise in commodity prices has affected inflation expectations.

Compared with the semi annual outlook released in November last year, OECD's assessment of the global economy has been greatly improved.

At that time, OECD estimated that the growth rate of 33 members in 2011 was only 2.3%.

Padoan said the European Central Bank and the US Federal Reserve Committee (Fed) used to coordinate actions in the past, but now they have different views on the future.

He said the ECB is worried that inflation expectations are out of control; the difference in monetary policy appears to be affecting the exchange rate, which is stronger than the US dollar.

OECD did not release expectations for Japan's economy this time, and said it is too early to assess losses caused by earthquakes, tsunamis and nuclear crises.

The report said Japan's economic growth in the first quarter may be down by 0.2-0.6 percentage points, and the second quarter's economic growth may be down by 0.5-1.4 percentage points.

OECD raised the US economic growth rate of second to 3.4% in the year to November, when it was expected to be 2.5%.

In addition, OECD raised the second quarter growth rate of France to 1.6% from the previous 1.6%, and increased the second quarter growth rate from 2.6% to 3.8%.

OECD lowered the UK's second quarter growth forecast from 1.3% to 1%, cut Italy's second quarter growth forecast from 1.6% to 1.3%, and Germany's second quarter growth forecast remains unchanged at 2.3%.

The report points out that due to the rise in commodity prices, the overall inflation indicators of most of the large economies of OECD members have risen significantly, and inflation expectations have also risen.

OECD pointed out that developed countries should make rectifying budgets a top priority because most members of OECD still have poor financial standing.

The report says one source of uncertainty is the sovereign debt risk of the peripheral members of the eurozone.

Padoan believes Portugal's instability remains the main concern.

OECD said that the economic forecasts made in the report face both upward risks and downside risks.

Instability in the Middle East and North Africa and the possible further rise in oil prices are the most likely drag on economic activity.