OECD says recession ‘near bottom'
OECD says recession ‘near bottom'
According to Angel Gurria head of the Organization for Economic Cooperation and Development (OECD) the global economy is at a turning point but the recovery is expected to be weak and slow at the beginning.
After the sharp global downturn that occurred in October 2008 and lasted till March this year, the pace of economy decline is now moderating. OECD expects the world economy to shrink by 2.2% this year but grow by 2.3% in 2010. The world trade is expected to fall by 16% this year where Germany and Japan will be hit the most. The unemployment rate will rise over 10% in the Eurozone and the US.
The US economy is projected to decline less sharply than previously expected. It will shrink by 2.8% in 2009 and grow 0.9% in 2010. The OECD countries that include 30 most industrial nations are expected to shrink by 4.1% in 2009 and grow by 0.7% in 2010.
The Eurozone will shrink by 4.8% in 2009 and there is no growth projected in 2010 according to the OECD. The UK will suffer the most and will decline by 4.3% in 2009, 0.6% worse than previously projected. Japan now is expected to fall less sharply but the decline will still be harsh by 6.8% in 2009. The large non-OECD country like China is now experiencing signs of recovery of its economy.
BBC News- 6/24/2009