The OECD expects the economic recovery in the US to be significantly better than in Europe. In its new Economic Outlook survey the agency says US gross domestic product (GDP) is expected to grow by 2.5% in 2010 and a further 2.8% in 2011. But, “The Euro area economy is projected to grow next year by 0.9% and by 1.7% in 2011.”
China, as might be expected, will pace the improvement in the global economy.
The group’s comments on unemployment were discouraging. Jorgen Elmeskov, acting Chief Economist of the OECD said “Radical policy action will be required in the years to come to restore sound macroeconomic balance, healthy growth and low unemployment, “said Mr Elmeskov. “Only when that has happened will the crisis have been fully overcome.”
The OECD joins the legions of experts who identify employment as the most critical element of a recovery. Unfortunately no one has provided a good solution to the problem.
Douglas A. McIntyre
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