OECD Outlook On Majors
Organization for Economic Cooperation and Development.
OECD >>> OECD made cuts on US Economy growth and made minor adjustments on Euroland and Japan. OECD cuts the growth from 3.6% to 3.3% for 2006 and for 2007 made cuts at 2.4% from 3.1%. And they expect a slight bounce back in 2008.
OECD lowered its forecast for euro zone growth this year to 2.6 pct from 2.7 pct, and raised its projection for 2007 growth to 2.2 pct from 2.1 pct. OECD expects the euro zone to grow 2.3 pct in 2008. OECD forecast for Japan's GDP growth to 2.8 pct from 2.5 pct this year, but cut its projection for 2007 growth to 2.0 pct from 2.2 pct. It also expects growth of 2.0 pct in 2008.
OECD forecasts are near to other forecasts. OECD raised its forecasts for German growth, OECD saying German entered a sustainable recovery and is projected to grow above potential throughout the projection period. German GDP growth this
year to 2.6 pct from 2.2 pct and its forecast for 2007 growth to
1.8 pct from 1.6 pct. It said it expects growth to pick up again to
2.1 pct in 2008.
OECD saying that US Fed is going to maintain the tighter monetary
policy untill the end of 2007. In report they said that if inflation
rises further up then tightening the monetary policy is not ruled out. As per rate setters tehy said that they will be closely watching
the every incoming data before they take some action on December 12
meeting.
OECD saying that BoE hasnt got too much to hang about the rate hike,
coz inflation is expected to ease down at the comfort zone.
OECD said a slowdown in house prices in the advanced economies may
have only a limited negative impact on economic growth. The OECD said the recent deceleration in house price growth in some countries
probably reflects the fact that prices have grown out of line with
fundamentals in several markets, particularly in English-speaking and Nordic countries.
OECD said oil prices are unlikely to fall much further after their
recent correction, but metals prices could decline over the next few
years.
Japan should not raise its short-term policy interest rate again until it achieves a more positive level of inflation and is clearly free from the risk of renewed deflation. In Japan, while headline and median inflation are positive, core inflation excluding fresh food and energy and the year-on-year rate of change of the GDP deflator are still negative. Achieving a clear exit from deflation is taking longer than expected.
OECD >>> OECD made cuts on US Economy growth and made minor adjustments on Euroland and Japan. OECD cuts the growth from 3.6% to 3.3% for 2006 and for 2007 made cuts at 2.4% from 3.1%. And they expect a slight bounce back in 2008.
OECD lowered its forecast for euro zone growth this year to 2.6 pct from 2.7 pct, and raised its projection for 2007 growth to 2.2 pct from 2.1 pct. OECD expects the euro zone to grow 2.3 pct in 2008. OECD forecast for Japan's GDP growth to 2.8 pct from 2.5 pct this year, but cut its projection for 2007 growth to 2.0 pct from 2.2 pct. It also expects growth of 2.0 pct in 2008.
OECD forecasts are near to other forecasts. OECD raised its forecasts for German growth, OECD saying German entered a sustainable recovery and is projected to grow above potential throughout the projection period. German GDP growth this
year to 2.6 pct from 2.2 pct and its forecast for 2007 growth to
1.8 pct from 1.6 pct. It said it expects growth to pick up again to
2.1 pct in 2008.
OECD saying that US Fed is going to maintain the tighter monetary
policy untill the end of 2007. In report they said that if inflation
rises further up then tightening the monetary policy is not ruled out. As per rate setters tehy said that they will be closely watching
the every incoming data before they take some action on December 12
meeting.
OECD saying that BoE hasnt got too much to hang about the rate hike,
coz inflation is expected to ease down at the comfort zone.
OECD said a slowdown in house prices in the advanced economies may
have only a limited negative impact on economic growth. The OECD said the recent deceleration in house price growth in some countries
probably reflects the fact that prices have grown out of line with
fundamentals in several markets, particularly in English-speaking and Nordic countries.
OECD said oil prices are unlikely to fall much further after their
recent correction, but metals prices could decline over the next few
years.
Japan should not raise its short-term policy interest rate again until it achieves a more positive level of inflation and is clearly free from the risk of renewed deflation. In Japan, while headline and median inflation are positive, core inflation excluding fresh food and energy and the year-on-year rate of change of the GDP deflator are still negative. Achieving a clear exit from deflation is taking longer than expected.
posted by Naveen Pantera at 6:59 PM
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