OECD sees gradual US-led recovery despite euro zone weakness

PARIS, Nov 6 (Reuters): The global economy is only gradually picking up momentum as stagnation in the euro zone and growing weakness in some big emerging economies weighs on the US-led recovery, the OECD said on Thursday.

With the euro zone a stubborn weak spot in the global economy, the OECD called on the European Central Bank to live up to a promise "to do what ever it takes" to revive its economy and begin purchasing government bonds.

The ECB holds its latest policy-setting meeting on Thursday.The Paris-based Organisation for Economic Cooperation and Development updated its outlook ahead of a summit next week in Australia of leaders from the Group of 20 economic powers. It is to provide a more complete outlook and analysis on Nov. 25.

Marginally trimming estimates dating from May, the OECD forecast that the world economic growth would accelerate from growth of 3.3 per cent this year to 3.7 per cent next year and 3.9 per cent in 2016.

"The global economy is continuing to run in low gear," the OECD's new chief economist, Catherine Mann of the United States, told Reuters in an interview.

"Even though we are looking at global growth to increase up to 3.9 per cent by the end of 2016, that still leaves us about a half a per centage point below our historical experience."

The OECD forecast the US economy would see growth speed up from 2.2 per cent this year to 3.1 per cent next year as an improving job market gives private spending a boost.

Firming US growth warranted a gradual increase in the Federal Reserve's interest rates from the middle of next year, the OECD said, warning however that hikes could trigger turbulence in emerging markets.