OECD Reports: World Economy Worse Than Expected

SHAKESPEARE:
Now the global economic crisis seems to have more dire consequences. According to the OECD, global economic indicators for 2009 will be worse than previously predicted. Heres more.


STORY:
A report released on Tuesday by The Organization for Economic Co-Operation and Development (OECD) offered a dismal view of the current state of the world economy.

[Klaus Schmidt-Hibbel, OECD Chief Economist]:
"The world economy is in the midst of its deepest and most synchronized recession in our lifetimes, certainly since the 1930s, caused by a global financial crisis and deepened by a collapse of world tradeWorld real GDP growth is expected to fall by 2.75 percent this year, and to recover by 1.25 percent next year (2010)."

A sharp fall in international trade will also drag down export-reliant economies like Germany and Japan.

[Klaus Schmidt-Hibbel, OECD Chief Economist]:
"We have the historical data of world trade, with a massive decline in the last quarter of 2008 and a similar decline in the first quarter of 2009, estimated until March 31. And we estimate for the entire year, a decline by 13 percent of world trade for this year."

The economic crisis will affect the unemployment rate even more next year, according to the report.

[Klaus Schmidt-Hibbel, OECD Chief Economist]:
"Joblessness in all OECD countries will rise very sharply, with the rate of unemployment peaking in 2010 or early 2011, so peaking maybe 1 ½ to 2 years down the road, and in a majority of countries reaching double-digit levels for the first time since the early 1990sWe forecast that the OECD average unemployment rate will reach and slightly surpass 10 percent in late-2010, for the U.S. a bit larger, for the Euro area touching 12 percent, and in Japan increasing toward but not reaching 6 percent."

The OECD forecasts for growth and trade are much more pessimistic than those of the World Bank, which announced that it expected a 1.7 percent contraction of the world economy and 6 percent decline in trade this year.

Category:

News & Politics

Tags:

• ntd
• OECD
• global economic crisis

[Lynchian74]

1 month ago the IMF predicted a 0.5% increase in Global GDP. A month before that it was near ly 2% increase. Now its -2.75% from the World Bank.

Economics is a social science. So behind these statistics are real people. Real people up to their eyes on debt, on anti depressants, on the edge. This whole crisis is a self energising vicious circle that is worsening exponentially. Global economic collapse is imminent. The G20 know this.

[heppepster]

Klaus never mentions the names of those responsible for the current situation: collusive governments, kleptocratic monopolist banksters, and central banks across the planet. Of course, I'd give special mention to Greensahn and Bernanke. They deserve a prize.

[HarvardBoxer]

The world is bankrupt, face it...

[jatamode]

It will only get worse. It's not Obama nor Bush fault. The bible speaks of these things and the bible must and shall fulfill. Please accept Jesus Christ the son of GOD into your heart and believe on his name before it's too late.

[sergey444]

amen!