OECD sees lagging recovery for jobs

November 19, 2009 - 0 comments

Paris -- The global economic recovery hasn't the muscle to stop rising unemployment, the Organization of Economic Cooperation and Development in Paris said Thursday.

The organization that represents 30 developed nations and about 70 percent of the world's economic output, said "the most virulent recession in decades," is on the wane.

For a time, however, the powerful 70 percent will be leaning on emerging countries, OECD said.

"Non-OECD countries, especially in Asia and particularly in China, are now a well-established source of strength for the more feeble OECD recovery," the report said.

"The good news," said OECD Secretary-General Angel Gurria, "is that the recovery, albeit a weak one, is underway."

Gurria said, "removing stimulus measures is imperative," but cautioned against a hasty unwinding of government interventions that could undermine the recovery.

The OECD forecast the United States gross domestic product would drop 2.5 percent in 2009 and grow 2.5 percent in 2010.

In Japan, OECD projected the GDP would shrink 5.3 percent this year and grow 1.8 percent in 2010, while the 16-member euro zone would see 2.1 percent contraction this year and 1.2 percent growth in 2010.

China would see its GDP grow 8.2 percent this year and 10.2 percent in 2010, the OECD said.