OECD sees signs of growth for UK economy

| September 14, 2012 | 0 Comments
OECD sees signs of growth for UK economy

The Organisation for Economic Cooperation and Development (OECD) has reported ‘tentative signs’ that the UK economy will start to recover within the next six-to-nine months.

Its forecast follows a further fall in unemployment in the UK, helped by the London Olympics.

The number of people out of work fell by 7,000 to 2.59 million in the quarter, and 5,500 of those finding work were in London.

The number of people in work has now returned to its May 2008 level, with the unemployment rate at 8.1 per cent.

According to the Office for National Statistics, 1.57 million people claimed Jobseeker’s Allowance in August, a fall of 15,000 from July and the largest monthly fall since June 2010.

The OECD also reported signs of a return to growth in Brazil, but the economies of China, Indian and eurozone countries are expected to continue to experience a slowdown in the months ahead.

The good news from the OECD echoes the Chancellor’s optimism last week when he told business leaders that there were positive signs for the UK economy.

At a CBI dinner Mr Osborne said: “Our economy is healing - jobs are being created, manufacturing and exports have grown as a share of our economy, our trade with the emerging world is soaring, inflation is down, much of the necessary deleveraging in our banking system has been achieved, and the world is once again investing in Britain.”

Last week the OECD said that the UK economy would contract by 0.7 per cent in 2012, having previously predicted 0.5 per cent growth.

The organisation said that the UK would fail to pull out of its double-dip recession in the current quarter.

It warned that the eurozone debt crisis is hampering economies on a global scale and called for increased policy action to generate confidence in the eurozone.

The OECS’s chief economist Pier Carlo Padoan said: “Our forecast shows that the economic outlook has weakened significantly since last spring.

“The slowdown will persist if leaders fail to address the main cause of this deterioration, which is the continuing crisis in the euro area.”

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