OECD expects deepening global economy recession
Azerbaijan, Baku, March 31 / Trend , A.Badalova/
The Organization for Economic Co-operation and Development (OECD) forecasts worsening global recession in 2009 before restoring economic situation in 2010.
International trade will drop by over 13 percent and business activity - by 2.7 percent in 2009, the OECD reported.
"Giant developing countries will also face with sharp growth cut," the report said.
The OECD forecasts business activity in the OECD member-countries will fall by 4.3 percent in 2009, while unemployment level will reach a two-figure level in many countries in 2010 for the first time since early 90s.
Under the forecasts, business activity in the United States will sharply drop in near future and the country will recover from the recession in early 2010 only after taking efficient measures to stimulate economy and stability of the finance and real estate market. The OECD forecasts GDP will decrease by four percent in the country in 2009 and it will not change in 2010.
In giant developing countries, access to international loans will be restricted, prices for goods will drop, as well as demand for export will weaken and respectively business activity will fall. The OECD forecasts that GDP in Brazil will drop by 0.3 percent and by 5.6 percent in Russia in 2009. India and China will experience growth by 4.3 percent and 6.3 percent, respectively in 2009.
Economic growth will be restored in the Euro-zone in mid 2010. GDP in the region will fall by 4.1 percent in 2009 and 0.3 percent in 2010, the OECD forecast.
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