World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Global economy is improving but Europe lags behind

Global economy is improving but Europe lags behind, says OECD
>> Watch the webcast of the press conference

28/03/2013 - Global economic activity is picking up, but the continuing crisis in the euro area is delaying a meaningful recovery, the OECD said in its latest Interim Economic Assessment.

The Assessment, presented in Paris by Chief Economist Pier Carlo Padoan, says that the G7 economies are expected to grow at an annualised 2.4 per cent rate in the first quarter of 2013 and at a 1.8 percent rate in the second. It notes that financial markets are out-pacing real activity, which has been held back by weak business and consumer confidence, and highlights the risk that asset prices may rise beyond levels justified by fundamentals.

“The global economy weakened in late 2012 but the outlook is now improving for OECD economies,” Mr Padoan said. “Bold policy action remains necessary to ensure a more sustainable recovery, particularly in the euro area, where growth is uneven and remains slower than in other regions.”

The OECD projects that the euro area’s three largest economies – Germany, France and Italy – will grow by 0.4 per cent during the first quarter and by an additional 1 per cent in the second, but points to a renewed divergence between growth in Germany and the euro area economies.

The German economy is expected to grow by 2.3 per cent in the first quarter and by 2.6 per cent in the second. The French economy is expected to see a 0.6 per cent contraction in the first quarter followed by a 0.5 per cent rebound in the second. In Italy, real GDP is expected to drop by 1.6 per cent in the first quarter and by an additional 1 per cent in the second.
Weak growth and low confidence are expected to complicate efforts to bring down high unemployment rates across much of Europe.

“The employment situation continues to deteriorate in many countries, making it all the more urgent to implement the labour and product market reforms that can stimulate growth and create jobs,” Mr Padoan said.

Growth in the United States was held back by one-off factors in the fourth quarter of 2012, but the economy is expected to see a rebound of 3.5 per cent in the first quarter of 2013 before returning to moderate growth of 2.0 per cent in the second. Canada is set to grow by 1.1 per cent during the first quarter and 1.9 per cent during the second.

Growth in Japan is projected to accelerate from previous low levels to a 3.2 per cent pace during the first quarter and 2.2 per cent in the second, while the United Kingdom is expected to grow by 0.5 percent during the first quarter and 1.4 percent in the second.
Monetary stimulus remains necessary but needs vary across countries. “In the United States, the commitment of the Federal Reserve to keep policy rates low until labour market outcomes improve substantially is well judged, but the need for further exceptional monetary measures is waning, while in Japan more aggressive policy action is required to escape deflation and achieve the Bank of Japan’s new 2% inflation target,” Mr Padoan said.

“In the euro area, there is still some scope to ease monetary policy further, given weak demand and inflation well below the ECB’s objective, while further action is needed to repair the transmission mechanism. ”

For more information on the Interim Economic Assessment, see: www.oecd.org/oecdeconomicoutlook.

ENDS

© Scoop Media

 
 
 
 
 
World Headlines

 

Japan: Independent Experts Slam Japan’s New Whaling Plan

Independent experts slam Japan’s new whaling plan and declare no more whales need to be killed for Antarctic research More>>

Gaza Strip: Gaza Strip: Attacks In The Border Areas

Following disengagement from the Gaza Strip in September 2005, Israel unilaterally and illegally established a so-called “buffer zone”, an area prohibited to Palestinians along the land and sea borders of the Gaza Strip. The precise area designated by ... More>>

Australian Government: Iraq Deployment: Joint Press Conference, Canberra

Back in March, the Government announced that we were preparing a force for a Building Partner Capacity training mission in Iraq. I can inform you that today the Cabinet has decided to deploy that force. The deployment will start tomorrow and we expect ... More>>

UNHRC: UN Committee Against Torture To Review New Zealand

UN Committee against torture to review New Zealand, Congo, Romania, Luxembourg, Spain, Serbia, Colombia, Former Yugoslav Republic of Macedonia More>>

UNHRC: Nigeria: One Year On, Call To Bring Back Abducted Children

Nigeria: One year on, UN and African experts call for decisive steps to bring back abducted children More>>

EU & US Let Iran Win Top Seat On UN Women’s Rights Board

EU & US Allowed Iran to Win Top Seat on UN Women’s Rights Board, Rights Group Says More>>

Peaceful Tree Planting Attacked By Zionist Settlers/soldiers

Peaceful tree planting attacked by zionist settlers and soldiers, two Palestinians hospitalised and a German activist arrested. More>>

One Year On: WWF Fails To Act Against Abuse Of ‘Pygmies'

Baka 'Pygmies' have faced harassment, beatings and torture by anti-poaching squads supported and funded by WWF. Conservation giant World Wide Fund for Nature (WWF) has failed to take action against the abuse of Baka “Pygmies” and their neighbors ... More>>

Cyclone Pam Evacuation Centers Home To New-Born

UNFPA Pacific, Port Vila, Vanuatu (March 25, 2015) - As her family settled into one of the classrooms at Freswota Primary School in Cyclone Pam-stricken Port Vila, in the Pacific island nation of Vanuatu, Meri Yalu was more troubled by an impending ... More>>

Get More From Scoop

 
 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news