WASHINGTON - The U.S. economic recovery is strengthening and the Clinton administration should continue its battle to reduce the country's massive debt, the Organization for Economic Cooperation and Development said in its yearend outlook.

The organization forecast that real gross domestic product will grow 3.1% in 1994 following an increase of 2.8% this year. But the economic organization for developed countries projected a slowdown to 2.7% in 1995 as a more restrictive monetary policy takes hold. It said the Federal Reserve would probably raise interest rates to ward off inflation as the economy gathers pace.

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