PARIS, Nov. 28 (Xinhua) -- Paris-based Organization for Economic Cooperation and Development (OECD) foresees a 2.6-percent increase in the 12-nation eurozone economy in 2006 and a 2.2-percent increase in 2007.
OECD upgraded the previous forecasts of 2.2 percent in 2006 and 2.1 percent in 2007 to 2.6 percent and 2.2 percent respectively, according to the organization's biannual report released on Tuesday.
"In the euro area, activity has finally taken off, following a series of aborted recoveries," OECD's chief economist Jean-Philippe Cotis wrote in the preface of the report.
The "central scenario" in the zone for the next two years is one of stable growth and mild inflation, despite Germany is to increase sales tax which will slightly boost inflation in the zone's biggest economy, the report said.
Germany is increasing the value-added tax paid by consumers to 19 percent from 16 percent on Jan. 1.