OECD: economic meltdown risks recede due to U.S., GermanyMarch 29, 2012 - 15:41 AMT PanARMENIAN.Net - Risks of an economic meltdown have receded, mainly due to improved prospects in the United States and Germany, but most of Europe is still vulnerable, the Organization for Economic Cooperation and Development (OECD) said Thursday, March 29 in Interim Economic Assessment for OECD countries, M&C reported citing DPA. Membership of the Paris-based organization comprises the U.S., Canada, most of Europe, Japan, Korea, Australia, New Zealand and Chile. Thursday's report focused on the US, Canada, Japan, Britain and the three largest eurozone economies - Germany, France and Britain. U.S. growth prediction were revised to 2.9 per cent in the first half of 2012, and to 2.8 per cent in the second, up from 1.7 per cent and 1.9 per cent respectively in November. For Germany, Padoan predicted 0.1-per-cent growth in the first half of the year, and 1.5 per cent in the second. Four months ago his organization had forecast a 0.6-per-cent expansion for the entire year. The French economy was projected to contract by 0.2 per cent in the first semester, and expand by 0.9 per cent in the second; the Italian to shrink by 1.6 per cent and 0.1 per cent over the same period. Britain's gross domestic product (GDP) should fall by 0.4 per cent in the first semester and pick up in the second, growing by 0.5 per cent. Japan was expected to “rebound strongly” in the first half, with GDP expanding by 3.4 per cent. The growth rate was expected to slow to 1.4 per cent in the second semester, the OECD said. Recent spikes in oil prices will hurt the fledging recovery, the OECD warned. It predicted that they would add “one quarter of a percentage point to inflation” and shave 'between 0.1 and 0.2 per cent' off GDP growth across the entire OECD region. Turning to Europe, Chief Economist Pier Carlo Padoan detected symptoms of a credit crunch, noting that “growth in lending in the euro area remains weak and has recently decelerated even further, despite recent (European Central Bank) interventions.” He repeated calls for an increase in the size of the currency bloc's firewalls - which eurozone finance ministers were set to discuss Friday - and quicker action to recapitalize weak banks. The OECD report also stressed the need for structural reforms across the European Union - both in so-called “deficit countries” such as Spain, Greece and Italy, and “surplus” ones like Germany. These are needed “to address fundamental imbalances” in the eurozone, and should concentrate on the EU's single market, product market regulation, tax codes and labour laws, Padoan suggested. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Lemkin Institue slams Pashinyan's “cryptic engagement with Genocide denial” The Lemkin Institute is alarmed over Pashinyan’s statements “questioning Armenia's legal basis to pursue justice against Turkey”. 41 detained as antigovernment protests continue in Yerevan 41 people were detained in Yerevan as people demanding Pashinian’s resignation stage campaigns of civil disobedience. Armenia votes for UN resolution granting Palestine new rights The U.N. General Assembly voted by a wide margin on May 10 to grant new “rights and privileges” to Palestine. EU still discussing funding Armenia through European Peace Facility Discussions continue in the EU on providing Armenia with funds from the European Peace Facility, Vassilis Maragos says. |