3 Sep 2013
OECD hikes European growth forecasts
FXstreet.com (Barcelona) - The Organization for Economic Cooperation and Development said on Tuesday that a gradual recovery can already be seen in Europe, where Germany and France are expected to grow more than previously projected.
In its report the OECD raised Germany's GDP forecast for 2013 from 0.4% to 0.7%. France was projected to grow by 0.3% this year, compared with the previous estimate of a 0.3% contraction. The UK growth outlook was also raised sharply from 0.8% seen in May to 1.5%.
Despite the optimistic projections, the OECD advised the European Central Bank to be ready to cut rates further, should the recovery in the area falter. It also suggested that the most indebted countries should increase efforts to boost competitiveness.
The OECD also urged the Fed to start tapering its bond purchases soon, as it sees the country on a path of steady growth. Still, it expects the US economy to expand by 1.7% in 2013, down from the previous forecast of 1.9%. The outlook for China was cut from +7.8% to +7.4%.
The OECD also pointed out that the slowdown seen currently in many emerging economies could weigh on global growth.
In its report the OECD raised Germany's GDP forecast for 2013 from 0.4% to 0.7%. France was projected to grow by 0.3% this year, compared with the previous estimate of a 0.3% contraction. The UK growth outlook was also raised sharply from 0.8% seen in May to 1.5%.
Despite the optimistic projections, the OECD advised the European Central Bank to be ready to cut rates further, should the recovery in the area falter. It also suggested that the most indebted countries should increase efforts to boost competitiveness.
The OECD also urged the Fed to start tapering its bond purchases soon, as it sees the country on a path of steady growth. Still, it expects the US economy to expand by 1.7% in 2013, down from the previous forecast of 1.9%. The outlook for China was cut from +7.8% to +7.4%.
The OECD also pointed out that the slowdown seen currently in many emerging economies could weigh on global growth.