Tuesday, May 31, 2011
Continuing downside risks in global economy
From The Hindu
The much-anticipated Economic Outlook of the Organisation for Economic Co-operation and Development will be revealed on Wednesday by Pier Carlo Padoan, Deputy Secretary-General and Chief Economist.
Speaking on background, officials said that the report may highlight some of the continuing downside risks in the global economy including persistent unemployment, low growth rates, inadequate fiscal consolidation and rising global imbalances.
However on the upside, there is a general recognition that the economic recovery was progressing at multiple speeds, with emerging markets growing faster and advanced economies less so, an official said.
Further, as the recovery was becoming more and more self sustained, it was seen to be driven increasingly driven by private sector demand and less by policy stimuli, and this was a positive development.
In comments toThe Hindu that were specific to India, another official said “India recovered very strongly from the crisis,” adding that the moderation in growth seen in the recent accounts data was welcome. He said that the OECD predicted continued moderate growth, around 8.5 per cent.
Officials further said that the Reserve Bank of India's move to tighten monetary policy was “entirely appropriate” given the prospect of inflationary pressures, and additional incremental tightening would also be warranted.
The OECD's next Economic Survey of India will be released on June 12, 2011.
The much-anticipated Economic Outlook of the Organisation for Economic Co-operation and Development will be revealed on Wednesday by Pier Carlo Padoan, Deputy Secretary-General and Chief Economist.
Speaking on background, officials said that the report may highlight some of the continuing downside risks in the global economy including persistent unemployment, low growth rates, inadequate fiscal consolidation and rising global imbalances.
However on the upside, there is a general recognition that the economic recovery was progressing at multiple speeds, with emerging markets growing faster and advanced economies less so, an official said.
Further, as the recovery was becoming more and more self sustained, it was seen to be driven increasingly driven by private sector demand and less by policy stimuli, and this was a positive development.
In comments toThe Hindu that were specific to India, another official said “India recovered very strongly from the crisis,” adding that the moderation in growth seen in the recent accounts data was welcome. He said that the OECD predicted continued moderate growth, around 8.5 per cent.
Officials further said that the Reserve Bank of India's move to tighten monetary policy was “entirely appropriate” given the prospect of inflationary pressures, and additional incremental tightening would also be warranted.
The OECD's next Economic Survey of India will be released on June 12, 2011.
Labels: economic situation, OECD Ministerial meeting
# posted by Narayan Lakshman @ 5:02 PM 
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