NEW YORK (Reuters) - The New York Federal Reserve on Friday raised its outlook on U.S. economic growth in final quarter of 2016 and first three months of 2017 to near 2 percent following "parameter revisions" and stronger-than-forecast manufacturing data.

U.S. gross domestic product was on track to expand at an annualized pace of 1.89 percent in fourth quarter of 2016, faster the previous forecast of 1.77 percent a week ago, while GDP in the first quarter was on course to grow by an annualized pace of 1.94 percent, swifter than last week's estimate of 1.70 percent, the New York Fed's Nowcast model showed.

(Reporting by Richard Leong, Editing by Franklin Paul)