NEW: Global economy facing hesitant and uneven recovery
The global economy is expected to make a hesitant and uneven recovery over the coming two years. Decisive policy action is needed to ensure that stalemate over fiscal policy in the United States and continuing euro area instability do not plunge the world back into recession, according to the latest Economic Outlook. Read more
After five years of crisis, the global economy is weakening again. In this we are not facing a new pattern and our common policy challenge is to guide the global economy forward on a new long-term path.
Financial-market complexity shouldn't lead to crisis. There is a better, simpler way: Split the banks, says OECD Secretary-General Angel Gurría in an opinion piece published by the Wall Street Journal, Europe edition.
OECD countries are intensifying their fiscal consolidation efforts, introducing additional measures and extending the time horizon to implement them. Most have announced fiscal consolidation of more than 3% of GDP over the period 2009-15, according to the OECD’s Restoring Public Finances 2012.
Since the 2008 financial crisis, strains in the financial sector and in government balance sheets mean there is less and less supply of long-term capital. This has profound implications for growth and financial stability. Policymakers should take action.
Despite a deep recession in 2009 and weak growth in subsequent years, Hungary’s fiscal position compares favourably with many other OECD countries.
European recession slowing global economy
Economic Surveys: India
The Indian economy has been catching up quickly in the past two decades, and weathered the global recession well. Wide-ranging reforms and increased investment have lifted potential growth to almost 9%, the highest in Indian history. The government should now step up efforts to restructure public expenditure and reduce the fiscal deficit.
The latest data show that average government spending in the OECD area now exceeds 45% of GDP, up from slightly more than 40% in pre-crisis 2007. A reduction in public expenditures, and in some cases revenue increases, are required in many countries.