Male hand with pen on the investment chart with calculator and canadian dollars

The Organisation for Economic Co-operation and Development (OECD) is raising its economic forecast for Canada amid a strengthening global economy, but also warns that tensions are appearing that could threaten global growth.

The Paris-based economic think-tank says trade protectionism remains a key risk that would negatively affect confidence, investment and jobs.

The OECD comment follows moves by the U.S. to impose tariffs on steel and aluminum imports from most countries in the world, with Canada and Mexico exempted.

The OECD says it now expects the Canadian economy to grow 2.2% this year, up from an earlier prediction of 2.1%.

It also raised its Canadian growth outlook for next year to 2.0% compared with its forecast in November for 1.9%.

The OECD says the revised outlook compares with growth of 3% last year in Canada.