English | دری

Global Recovery Under Threat, says OECD

in International Business

Global Recovery Under Threat, says OECD


The eurozone debt crisis is threatening the global economic recovery, the OECD says

According to the Organisation for Economic Co-operation and Development (OECD), decisive policy action is needed to ensure the world is not “plunged back into recession.”

The OECD, which represents the world’s richest nations, also lowered its growth forecasts.

The group’s economies will grow by 1.4 per cent next year, rather than the 2.2 per cent it had forecast in May.

It added that the eurozone recession will also be deeper and more prolonged than previously thought.

According to the OECD, the US fiscal-cliff and the eurozone debt crisis are the biggest risks to the global economy.

The fiscal cliff refers to spending cuts and tax rises, designed to reduce the US government’s debt levels, that are due to kick in in the new year.

“The world economy is far from being out of the woods,”  said the OECD’s secretary general Angel Gurria, adding, “the US fiscal cliff, if it materialises, could tip an already weak economy into recession, while failure to solve the euro area debt crisis could lead to a major financial shock and global downturn.”

The OECD cut its growth forecast across its 34 members for this year and next. It also revised its forecast for the eurozone economy to contract by 0.1 per cent rather than grow by 0.9 per cent as estimated in May.

The forecast fro growth in the UK next year was cut to 0.9 per cent, down from a previous forecast of 1.9 per cent.

The revised forecasts were published hours after eurozone finance ministers reached an agreement to help debt-ridden Greece.



Related Articles

Fedex cuts its profit forecast

Amid the weakening global economy, the global shipping service company Fedex has cut its annual profits by 10%. The net

Samsung’s Galaxy S3 becomes the best-selling smartphone

Samsung’s Galaxy S3 finally beats Apple’s iPhone 4S position of the best-selling smartphones, selling 18mn models compared with Apple’s 16.2mn

Germany on a downgrade warning from Moody

The credit ratings agency Moody’s has warned the outlook for Germany’s AAA credit rating is negative, the first step towards

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.