The Organisation for Economic Co-operation and Development forecast that the US economy would expand at a 3.25 per cent rate over the next 18 months, close to the economy’s long-term potential growth rate.

But it warned that the continued deterioration of the US current account deficit posed a risk to the US and to the global economy, at a time when the US deficit has risen above 6 per cent of gross domestic product and is forecast to rise to 7 per cent of GDP next year.