News & Reports News Year 2010 November , 2010 OECD predicts slowing econ recovery

OECD predicts slowing econ recovery

A new report says the world economy is not recovering from the global recession as predicted, showing signs of weakness in emerging countries and the US.
In its biannual report, the Organization for Economic Co-operation and Development (OECD) has reported that the world economy may be downgraded even further citing global currency tension and a possible debt crisis in Europe as the reason.

The report has lowered its forecast from 4.6 to 4.2 percent for the year 2011 but expects the growth to go up to 4.6 percent for 2012.

This is while in May the OECD had forecast an expansion of 4.6 percent for 2010 and a little less than 4.5 percent for 2011. The report did not have a forecast for 2012.

"We see the recovery ongoing but at a somewhat slower pace," the OECD chief economist Pier Carlo Padoan told Reuters.

The report readjusted its forecast for US growth to 2.7 percent in 2010, 2.2 percent in 2011 and 3.1 percent in 2012.

This is while OECD had estimated in May that the US growth would bounce back from recession in 2009 to grow 3.2 percent in both 2010 and 2011.

The OECD warned that the outlook is not clear with a possible sovereign debt crisis in Europe, more house price declines in the US and the UK, foreign exchange market tension and a possible sharp upward snap in government