World heads for 4.75pc growth, debt a threat: OECD
Thursday, 27 May 2010
PARIS, May 26 (AFP): The global economy is heading for 4.75-per cent growth this year and next, thanks largely to emerging markets, and beating growth rates before the global downturn, the OECD said on Wednesday.
Battered global stock markets regained some ground Wednesday following heavy losses as the OECD raised its forecasts for economic growth.
Tokyo's Nikkei ended 0.66 percent higher, while Hong Kong rose 1.11 percent.
In Europe, Frankfurt rose 1.57 percent, London gained 1.66 percent and Paris shot up 2.60 percent in afternoon trading.
Growth in the 30 OECD industrialised economies is expected to be far lower, at 2.70 percent, although higher than the last forecast in November of 2.50 percent.
But the Paris-based organisation, a policy research forum for industrialised countries, warned in upgraded forecasts that the debt crisis in Europe and overheating in emerging markets could endanger the global recovery.
The Organisation for Economic Cooperation and Development also said that global imbalances-meaning mainly huge trade surpluses in some emerging economies and a deficit in the United States-are widening again. These imbalances are widely seen as a main cause of the global economic crisis.
"Growth is picking up in the OECD area-at different speeds across regions-and at a faster pace than expected in the previous Economic Outlook," the OECD said in a twice-yearly report on the global economy.
"Global output growth is expected to be around 4.75 percent this year and in 2011, above the growth rate experienced in the decade prior to the onset of the crisis."
Battered global stock markets regained some ground Wednesday following heavy losses as the OECD raised its forecasts for economic growth.
Tokyo's Nikkei ended 0.66 percent higher, while Hong Kong rose 1.11 percent.
In Europe, Frankfurt rose 1.57 percent, London gained 1.66 percent and Paris shot up 2.60 percent in afternoon trading.
Growth in the 30 OECD industrialised economies is expected to be far lower, at 2.70 percent, although higher than the last forecast in November of 2.50 percent.
But the Paris-based organisation, a policy research forum for industrialised countries, warned in upgraded forecasts that the debt crisis in Europe and overheating in emerging markets could endanger the global recovery.
The Organisation for Economic Cooperation and Development also said that global imbalances-meaning mainly huge trade surpluses in some emerging economies and a deficit in the United States-are widening again. These imbalances are widely seen as a main cause of the global economic crisis.
"Growth is picking up in the OECD area-at different speeds across regions-and at a faster pace than expected in the previous Economic Outlook," the OECD said in a twice-yearly report on the global economy.
"Global output growth is expected to be around 4.75 percent this year and in 2011, above the growth rate experienced in the decade prior to the onset of the crisis."