Six Major Advanced Economies Projected to Grow Around 3% in H1 Of 2011: OECD
The world's six major advanced economies excluding Japan will see a year-on-year growth rate of around 3 percent in the first half of 2011 as broad recovery seems "self-sustained", but uncertainties remain, the Paris-based Organization for Economic Cooperation and Development (OECD) predicted on Tuesday.
The economies of Britain, Canada, France, Germany, Italy and the United States will witness an average growth of around 3.2 percent in the first quarter of this year, and then record a smaller growth rate of 2.9 percent in the second quarter, the OECD said in its interim assessment.
The recent Japan earthquake and tsunami made it impossible for the moment to integrate the assessment of Japan's economic growth, the OECD said, adding that upcoming reconstruction effort is hopeful to revive Japan's national gross product (GDP) growth "by as early as the third quarter."
Taking the six economies as examples, the OECD said the first-quarter outcomes in most countries were likely to be stronger than anticipated.
"It seems likely that the recovery is becoming self-sustained," the report said, noting strong business confidence, steady industrial production growth, recovering world trade and improved financial conditions.
However, recent events surely posed downside risks, the OECD warned.
"Instability in the Middle East and North Africa and an associated possible further increase in oil prices could act as a drag on economic activity in the near term," it said.
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