Suspect charged after Vancouver car ramming leaves 11 dead    Suspect in killing of general claims he was paid by Ukraine    North Korea confirms troop deployment to Russia for first time    Rock & Roll Hall of Fame picks Outkast but not Oasis    400-800 year old giant coral colony discovered within AMAALA waters in the Red Sea    Makkah police arrest Yemeni and Egyptian suspects of fake Hajj campaign    Kafalah grants 1,900 loan guarantees worth over SR4.8 billion to SMEs during 1Q 2025    Council of Senior Scholars reaffirms performing Hajj without a permit is a sinful act    HR Ministry launches 'Ajeer Al-Hajj' service for seasonal work during Hajj 2025    stc reports strong first-quarter 2025 results with 11% rise in net profit    King and Crown Prince offer condolence to Iranian president over the deadly port explosion    Saudi Awwal Bank records SR2.1 billion net profit after zakat and income tax for 1Q25    Virgin Atlantic celebrates one month of nonstop service between London and Riyadh    Al Ahli cruise past Buriram into AFC Champions League Elite semi-finals    Duran leads Al Nassr past Yokohama Marinos into AFC Champions League Elite semi-finals    Saudi orchestra to perform at Sydney Opera House in May    Al Hilal thrash Gwangju to reach AFC Champions League Elite semi-finals    Saudi Theater Commission launches its Work and Learn Project in UK    The season has begun — and one comment shook us all    Average life expectancy in Saudi Arabia rises to78.8 years    Pakistani star's Bollywood return excites fans and riles far right    Veteran Bollywood actor Manoj Kumar dies at 87    Bollywood actress vindicated over boyfriend's death after media hounding    Grand Mufti rules against posting prayers and preaching in mosques on social media    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



OECD recovery gathering pace
Published in The Saudi Gazette on 20 - 11 - 2009

Recovery in developed economies will accelerate next year due to “substantial improvements” in financial markets and fast-growing Asian countries, but is likely to remain fragile, the Organization for Economic Cooperation and Development said Thursday as it doubled its 2010 growth forecast.
The Paris-based watchdog's chief economist, Jorgen Elmeskov, told a news conference that the recovery has been mostly driven by government stimulus measures and interest rate cuts. Those benefited financial markets, whose recovery is “considerably faster and stronger” than anticipated in the June economic outlook, he said.
Still, the recovery will remain modest next year, with the US and Japan outpacing Europe, the OECD report said.
Elmeskov warned banks not to use the “fat margins” they have accrued thanks to government policies designed to keep money flowing to the real economy to line their own pockets.
He said the margins “are the result of both weak competition in the sector and public policy interventions.” “It is important that these fat margins do not just end up as higher bonuses, dividends or buybacks.” While banks have started to loosen lending conditions - a vital condition for the economy to grow again -there are still some concerns about the health of their balance sheets and their ability to provide credit to fund the economy, he said.
The OECD more than doubled its estimate for 2010 growth in its 30 member countries - which include the U., Japan, Germany and the United Kingdom - to 1.9 percent, compared with 0.7 percent forecast in June. The projections are based on the assumption that by the middle of next year, financial conditions will have returned to normal.
The OECD publishes its economic outlook twice a year, although it updated some 2009 forecasts in an interim assessment published in September.
The US economy has been boosted by stimulus measures, improving financial conditions, demand from the fast-growing non-OECD economies of Asia - especially China - and the stabilization of the housing market, the OECD said. It predicted unemployment will start to ease after peaking in the first half of 2010.
The OECD predicts the US economy will expand at a rate of 2.5 percent in 2010, up from a June forecast of 0.9 percent. It also expects a smaller contraction this year: a 2.5 percent fall in output compared with an interim September forecast of a 2.8 percent drop.
In Europe, the economies of the 16 countries sharing the euro are now expected to grow by 0.9 percent next year compared to a June forecast of zero growth. However, the OECD predicts a greater contraction of 4 percent this year, more than the 3.9 percent it calculated in September.
Unemployment is not set to peak before the end of 2010 or the beginning of 2011, and is likely to sap the strength of recovery, the OECD said.
Japan's economy will grow by 1.8 percent next year compared with the June forecast of 0.7 percent. The OECD reduced prediction for a contraction this year to 5.3 percent compared to a 5.6 percent rate seen in September.
Elmeskov said central banks should keep interest rates low and should beware of the dangers of deflation, while governments should work on plans to reduce debt levels as the economy recovers. As growth picks up, policy makers will need to mop up some of the excess liquidity caused by policies designed to keep credit markets open when they threatened to freeze during the peak of the crisis.
The OECD suggests phasing out banks' use of funding guarantee schemes by making them more expensive rather than ending them, to avoid having to reintroduce them in case of renewed instability, which could undermine confidence. International coordination will be needed to roll back extended deposit insurance “as few countries may be willing to move ahead alone with a measure that could weaken the competitiveness of domestic banks,” it said.


Clic here to read the story from its source.