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Global economy strengthens but risks remain, OECD says
The Organization for Economic Cooperation and Development (OECD) has warned in its latest Economic Outlook that countries need to take urgent action to further reduce unemployment and address other issues stemming from the ongoing global economic crisis despite the projected improvements over the next two years
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he Organization for Economic Cooperation and Development (OECD) has warned in its latest Economic Outlook that countries need to take urgent action to further reduce unemployment and address other issues stemming from the ongoing global economic crisis despite the projected improvements over the next two years.
'Advanced economies are gaining momentum and driving the pick-up in global growth, while once-stalled cylinders of the economic engine, like investment and trade, are starting to fire again,' OECD secretary general Angel GurrÃa said during the launch of the Outlook on the sidelines of the organization's annual Ministerial Council Meeting and Forum in Paris.
As the world still faces persistently high unemployment, GurrÃa said countries must do more to enhance resilience, boost inclusiveness and strengthen job creation.
'The time for reforms is now: we need policies that spur growth but at the same time create opportunities for all, ensuring that the benefits of economic activity are broadly shared,' he said in a release made available to The Jakarta Post on Tuesday.
Gross domestic product (GDP) growth across the 34-member OECD is projected to accelerate to a rate of 2.2 percent this year and 2.8 percent in 2015, according to the Outlook. Meanwhile, the global economy is projected to grow 3.4 percent in 2014 and 3.9 percent in 2015.
Recovery among major advanced economies is best established in the US, which is projected to grow by 2.6 percent this year and 3.5 percent in 2015. The euro zone is expected to see positive growth of 1.2 percent this year and 1.7 percent in 2015 after three years of contraction.
In Japan, growth is expected to hover at 1.2 percent in 2014 and 2015, dented by the launch of much-needed fiscal consolidation measures.
The BRIICS, comprising Brazil, China, India, Indonesia, Russia and South Africa, is projected to see GDP growth of 5.3 percent this year on average and 5.7 percent in 2015.
'China will again have the fastest growth among these countries, with rates just below 7.5 percent in 2014 and 2015,' it said. (ebf)
