WHAT IS THE OECD SAYING?
It is saying that the global economy will start to improve soon. It is also saying that the deficits in most of the major global economies will not go much further into the red, and their deficits will actually improve from this point on. For example, in the previous OECD quarterly report released in March 2009 the US economic activity was projected to end 2009 at -4%, but in June’s report it has been upgraded to -2.8%. And instead of 0% growth figure for 2010, they have now upgraded that to an increase of 0.9%. Here is what the Secretary-General of the OECD, José Ángel Gurría, had to say. “Thanks to firm action to stimulate our economies it appears that we have escaped the worst during this crisis. But the next few months will be equally testing. There needs to be a clear and credible plan and timeline for phasing out the emergency measures as the recovery takes hold. It is critical to consider these exit strategies now in order to prevent new risks in the years ahead.” WHO IS THE OEC
