Financial Debt Solution:The OECD says that the period of recession is almost over
Tuesday, 7. July 2009
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However,
Article Content:
The worst recession in post-war history is almost over according to the Organisation for Economic Cooperation and Development (OECD). The OECD, which represents the 30 most industrialised nations, has said that it expects its members’ economies to shrink by 4.1 per cent this year.
However, it adds that, while the rate of economic shrinkage is slowing, any recovery is likely to be “weak and fragile”, and will go on for some time.
The sharp drop in the global downturn is now levelling off after the high-paced worldwide fall, but it is still expected that world output will shrink this year.
The OECD says that UK output is set to decline by 4.3 per cent throughout 2009, worse than their previous forecast of a 3.7 per cent drop.
Zero economic growth is predicted by the OECD for the UK economy for at least two years, and according to the body the UK budget deficit will fall to 14 per cent next year. These estimates are both worse than the government’s own predictions.
Risks have been lowered as we begin to see a levelling off of worldwide financial depression. The OECD has revised its economic forecasts to reflect the more positive outlook. The major economies of Japan and the US are widely expected to decline less sharply than previously projected.
Financial conditions might improve more quickly, although there is still risk for many people who face debt problems in the light of rising costs and continuing job losses.
The OECD has called for international coordination to avoid competitive disadvantage blocking the progress of economic recovery. And it adds that tough measures will be needed to reduce worldwide government deficits that have soared throughout the financial crisis.