OECD says global economy needs “decisive action” in - leatherbiz: Lea Leatherbiz

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OECD says global economy needs “decisive action” in US and Europe

27/11/2012
The global economy is expected to make a “hesitant and uneven recovery“ over the coming two years, according to Paris-based international economic organisation, the Organisation for Economic Co-operation and Development (OECD). “Decisive policy action is needed to ensure that stalemate over fiscal policy in the US and continuing euro-area instability do not plunge the world back into recession,” the organisation said in a new report.

“The world economy is far from being out of the woods,” said secretary-general, Angel Gurría, on announcing the report. “The US ‘fiscal cliff’, if it materialises, could tip an already weak economy into recession, while failure to solve the euro-area crisis could lead to a major financial shock and global downturn. Governments must act decisively, using all the tools at their disposal to turn confidence around and boost growth and jobs, in the United States, in Europe, and elsewhere.”

GDP growth across the 34 OECD member states is projected to match this year’s 1.4% in 2013, before gathering momentum to 2.3% for 2014, according to the report.

In the United States, provided the “fiscal cliff” is avoided, GDP growth is projected at 2% in 2013 before rising to 2.8% in 2014. In Japan, GDP is expected to expand by 0.7% in 2013 and 0.8% in 2014. The euro area will remain in recession until early 2013, leading to a mild contraction in GDP of 0.1% next year, before growth picks up to 1.3% in 2014, according to the OECD predictions.


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