PARIS, Nov 25 (Reuters): The global economy will gradually improve over the next two years but Japan will grow less than previously expected while the euro zone struggles with stagnation and an increased deflation risk, the OECD said on Tuesday.
There will be marked divergences among countries both in terms of growth and monetary policy, leading to volatility in debt and foreign exchange markets, the Organisation for Economic Co-operation and Development said.
The United States and Britain will grow more strongly then the euro zone and Japan and, among emerging countries, India, Indonesia and South Africa are set to recover steadily. Russia's economy is set to stagnate next year and China's will soften, the think-tank said in its bi-annual economic outlook.
Overall, the global economy is set to grow by 3.3 per cent this year, 3.7 per cent in 2015 and 3.9 per cent in 2016, the OECD said, confirming forecasts published before the G20's summit earlier this month.
While most estimates remained unchanged, Japan's forecast was more than halved for 2014 and cut to 0.8 per cent for next year after it unexpectedly fell into recession in the third quarter. But the OECD still expects Japan to recover as corporate profits remain high and a weak yen will help exports.
OECD sees gradual world recovery, urges ECB to do more
FE Team | Published: November 26, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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