Global growth is set for a sharp slowdown and the eurozone debt crisis "remains the greatest threat to the world economy at present," the OECD warned on Tuesday. The OECD said in its latest Economic Outlook, drafted before the eurozone and IMF unblocked almost 44 billion euros ($57 billion) in emergency loans for Greece: "A hesitant and uneven recovery is projected over the next two years." The outlook downgraded the outlook for global growth next year to 1.4 percent from 2.2 percent expected previously. Another threat to business activity worldwide is a potentially catastrophic budget standoff in the United States, where automatic tax increases and spending cuts are to take effect in January unless there is a compromise solution between Democrat and Republican lawmakers. The Organisation for Economic Cooperation and Development downgraded its growth estimates for this year and next for the United States and Japan, and its data showed that the eurozone recession could be deeper than last forecast in May. The 17-nation bloc is "projected to remain in or near recession until well into 2013," the report said. Overall the 34-member organisation's economies are expected to expand by 1.4 percent in 2012 and 2013, and then pick up to a pace of 2.3 percent in 2014. Unemployment is forecast to rise from 8.0 percent this year to 8.2 percent in 2013 before easing back to 8.0 percent in 2014. Inflation should decline meanwhile, from 2.1 percent in 2012, to 1.7 percent next year, and then edge up to 1.9 percent in 2014. "Economic prospects are very uncertain and highly dependent on the risks associated with the nature and timing of policy decisions related to the euro area crisis, (and) the US fiscal cliff," OECD analysts said.They pointed to falling household and business confidence that led to a payoff of debts and said the climate was also morose because "unemployment is set to remain high or even rise further in many countries." Emerging economies such as those in Brazil, China and India, which are not OECD members, would fare better, but were nonetheless subject to "spillover from the euro area crisis" that has contributed to a decline in global trade growth "to very weak rates." "World trade will strengthen only gradually" over the next two years, the OECD estimated. A breakdown of the forecasts put growth in the US economy, the world's biggest, at 2.2 percent this year and 2.0 percent in 2013, compared with the previous forecast in May of 2.4 and 2.6 percent. For Japan, gross domestic product (GDP) is now expected to expand by 1.6 and 0.7 percent this year and next, down from 2.0 and 1.5 percent, while the eurozone economy is tipped to contract by 0.4 and 0.1 percent. That compared with the earlier OECD eurozone estimate of a eurozone decline of 0.1 percent this year and growth of 0.9 percent in 2013. Outside the OECD, growth in Brazil from 2012 to 2014 was put at 1.5, 4.0 and 4.1 percent, in China at 7.5, 8.5 and 8.9 percent, and in India at 4.4, 6.5 and 7.1 percent. The eurozone should have the highest unemployment, with rates of 11.1 percent and 11.9 percent of the workforce, an increase from the earlier forecasts of 10.8 and 11.1 percent.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor