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World economic recovery is slowing, OECD says

World economic recovery is slowing, OECD says

The economic recovery has lost momentum since earlier this year, the Organization for Economic Cooperation and Development said Wednesday, cutting its forecasts for growth in developed countries next year.
The Paris-based organization, a watchdog for 33 of the world's most developed economies, also warned that the global economic crisis has brought "public deficits and debt to unsustainable levels." The OECD issued its report Wednesday before the Group of 20 summit of rich and developing countries in South Korea next week.
Because of weak growth in the U.S. and European countries that use the euro single currency, "the normalization of interest rates should only proceed in earnest from the first half of 2012," the OECD said.
If growth is weaker than foreseen, that process "should be delayed even further," it said.
The group forecast 2010 growth for its members at between 2.5 and 3 percent of gross domestic product, a wider range than in its previous forecast of 2.7 in June.
The OECD lowered its growth forecast for next year to a range from 2 to 2.5 percent of GDP. In June, it had put its estimate at 2.8 percent.
Its 2011 forecast dropped for the United States in particular: It put 2011 growth at between 1.75 and 2.25 percent, compared to 3.2 percent in the June forecast. But it said U.S. growth would pick up in 2012, coming in between 2.75 and 3.25 percent.
For 2012, the group's growth forecast for all its member states is for 2.5 to 3 percent of GDP.


Updated : 2021-03-06 00:48 GMT+08:00