The OECD is out with a fresh warning for the global economy, and a call for “urgent action” to address the crisis in Europe.Even if things get “fixed”, the organisation is still lowering its growth outlook.
The Outlook’s baseline scenario assumes that policy-makers take sufficient action to avoid disorderly sovereign defaults, a sharp credit contraction, systemic bank failures and excessive fiscal tightening. It sees GDP across the OECD countries slowing from 1.9% this year to 1.6% in 2012, before recovering to 2.3% in 2013. Unemployment in the OECD area is also projected to remain high for an extended period, with the jobless rate staying at around 8% through the next two years.
Included in the announcement are some fantastic charts that show, well… what a mess things have suddenly become for the economy.
Whether it’s trade volumes, financial stresses, or confidence, things are all turning south all around the world.
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