As advanced economies grow, emerging ones struggle PDF  | Print |  E-mail
Written by Associated Press   
Tuesday, 03 September 2013 06:36

PARIS (AP) — Developed economies are staging a comeback after years of lagging growth, but a slowdown in emerging countries will keep global growth low this year, the Organization for Economic Cooperation and Development said Tuesday.

In its interim assessment, the organization was more upbeat than it has been in recent years, as debt and financial crises in Europe and the U.S. hammered growth. But it called on central banks, particularly in the United States, to continue with the loose monetary policies that have been credited with helping economies rebound.

Already, it said, expectations that the U.S. would ease its monetary stimulus program have caused an increase in long-term market interest rates and started weighing on emerging economies. With unemployment in many parts of the world still high, businesses and consumers still need the low interest rates and easier access to loans that loose monetary policy provides, the report said. A sharp pullback could sink the recovery.

In addition, while the OECD noted that the economy of the countries that use the euro has come out of recession, it warned that the region is still fragile and could drag down global growth.

The report predicted that the three biggest euro economies — Germany, France and Italy — would grow by an average of 0.4 percent this year. The report predicted growth in the U.S. would be around 1.7 percent, down slightly from its estimate of 1.9 percent in May.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Front Page Stories

Market Square already bustling with business
07/26/2014 | MARIE THOMAS BAIRD Sentinel Education Editor
article thumbnail

Market Square in BG along Wooster Street. (J.D. Pooley/Sentinel-Tribune) Market S [ ... ]

Young man goes west to further his acting career
07/26/2014 | DAVID DUPONT Arts & Entertainment Editor
article thumbnail

Justin Betancourt (left) and Jeffrey Guion perform. (Enoch Wu/Sentinel-Tribune) J [ ... ]

Other Front Page Articles