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OECD ups global growth forecast

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OECD ups global growth forecast

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Asia is leading the global economy out of recession but the recovery will be marred by high unemployment and huge government debt across the industrialised countries.

That is according to the Organisation for Economic Co-operation and Development. In its latest Economic Outlook it has raised its global growth forecast for 2010 to 3.4 per cent. It predicts unemployment will remain high, hitting 10.6 per cent in the euro zone next year and 10.8 per cent in 2011. The OECD economists see moderate growth for the US this year and next, Japan lagging that slightly, the euro zone much weaker, particularly this year, and China continuing to power ahead. They said central banks and governments in major Western economies should prepare for a gradual rise in ultra-low interest rates and be careful in tightening monetary policy as their economies recover.