Last update: 10-Dec-2013 1:42 am
Tuesday, December 10, 2013
Trinidad & Tobago Guardian Online
You are here
As advanced economies grow, emerging ones struggle
PARIS—Developed economies are staging a comeback after years of lagging growth, but a slowdown in emerging countries will keep global growth low this year, the Organisation for Economic Cooperation and Development said yesterday. In its interim assessment, the organisation was more upbeat than it has been in recent years, as debt and financial crises in Europe and the US hammered growth.
Deputy chief economist Joergen Elmeskov said the gross domestic product of the seven leading economies, known as the G-7, has been improving since shrinking in the last quarter of 2012 and would grow at an annualised rate of about 2.5 per cent in the second half of this year. “It’s moderate, but it’s still a better outcome than what we were used to in the recent past,” he told journalists as the report was released.
The report raised its estimates for growth in the two largest economies that use the euro: It predicted Germany would grow 0.7 per cent this year, up from May’s prediction of 0.4 per cent. France should see 0.3 per cent growth, as opposed to the contraction expected in May. But it lowered its forecast for the US to 1.7 per cent from its estimate in May of 1.9 per cent. China, the biggest of the emerging economies, was seen growing 7.4 per cent, down from a previous forecast of 7.8 per cent.
The OECD also warned that even though the economy of the countries that use the euro has come out of recession, the region is still fragile and could drag down global growth. While many emerging economies are slowing, the organisation said it thought the worst was over in China.
User comments posted on this website are the sole views and opinions of the comment writer and are not representative of Guardian Media Limited or its staff. Guardian Media Limited accepts no liability and will not be held accountable for user comments.
Please help us keep out site clean from inappropriate comments by using the flag option.
Guardian Media Limited reserves the right to remove, to edit or to censor any comments. Any content which is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will be removed.