OECD: Recovery and growth in 2010 in all world economies
Following the worst recession for decades across the world’s major economies, the Organisation for Economic Co-operation and Development (OECD) is expecting growth and recovery in 2010.
In its annual Economic Outlook, the Organisation upgraded its growth forecasts for next year, with world economic output contracting by 1.7% this year and rising by 3.4% in 2010.
However, the Organisation warns that the main threat for rich countries is unemployment, which is expected to continue to rise well into 2010 and to fall only modestly in 2011.
However, for the European Union, the OECD is expecting that unemployment may continue to rise until 2011.
Focusing on the UK, which has yet to emerge from recession, the OECD questions the effectiveness of its quantitative easing programme.
Furthermore, it warned that the pick-up would be slow with GDP projected to grow by slightly more than 1% next year.
In addition, the UK has seen a fast deterioration in its public finances and the OECD said a plan is required to ease concerns about the stability of the public finances.
However, bucking the trend among key emerging nations is China and India with the OECD predicting growth of 10% and 7% respectively.
Last month, official figures revealed that Chinese GDP growth surged to 8.9% in the July to September period, up from 7.9% in the April to June period.
The strong result was due to all sectors performing strongly and was the fastest GDP growth since quarter three last year.
Many analysts have described China’s recovery as ‘impressive’.
Finally, US President Barack Obama has warned that the US economy could be heading for a ‘W-shaped’ recession unless action is taken to rein back America’s growing levels of public debt.