OECD 2011, global economic growth down to 4.2%

OECD to 2011 global economic growth forecast down to 4.2%, the United States forecast down to 2.2%

* OECD said the downside risks including exchange rate tensions and the euro zone debt crisis

* Quantitative easing is a last resort to stimulate the economy

* Expand to an imbalance caused by protectionist fear of unilateral action

Reuters, Paris, November 18 - --- Organization for Economic Cooperation and Development (OECD) said on Thursday the global economic recovery gradually lost momentum, the pace of slowdown in the U.S. rebound and the major powers in the exchange rate on the resort to force. Or result in the debt crisis in Europe more weak economic performance next year.

OECD in the semi-annual report that governments need to tighten public finances and to start a better economic policy cooperation to promote sustained economic recovery.

The organization's chief economist, told Reuters the effect of short-term stimulus is getting worse, but he was on the U.S. Federal Reserve Board (Federal Reserve, FED) much criticized recent bond purchase plan agreed.

"Although the economy is still recovering them, but earlier this year, compared to the pace of recovery seems sluggish," OECD Secretary-General told a news conference Goliath. "Currently in the lag period ... increase output and trade are put relief, fiscal incentives and other effects of temporary factors have also caused regression of support. "

The organization forecast world economic growth expected in 2011 slowed to 4.2%, expected economic recovery in 2012 to 4.6% level. This year it expected growth of 4.6. May this year, its growth is also forecast the next two years were 4.6 % and 4.5%.

As the Government response to the financial crisis mess to try to revive growth, which increased the global uncertainty, OECD, said the prospect of weak on risk considerations.

The allegations of possible European sovereign debt crisis, the foreign exchange market at daggers drawn, government bond yields could surge, as well as the UK and U.S. home prices fell again.

OECD world's major economies this year's growth forecast revised down to 2.7% in 2011 and 2012 growth forecast of 2.2% and 3.1% .5 month were its forecast growth of 3.2% this year and next.


** ** Mixed outlook

OECD 33 member countries considerable differences in the economic outlook, the group will identify the overall OECD growth rate is raised slightly by 2.8%, but dropped to 2.3% next year.

Mainly in the fast-growing emerging countries, its growth rate will slow to more sustainable levels, continued to provide support for the global economy.

OECD estimates the economy in the 16-nation euro zone next year will grow 1.7% this year due to tight government budget constraints, Greece and Ireland, resisted external indebtedness of members.

OECD chief economist Padoan (Pier Carlo Padoan) urged the EU member states to help deal with the debt crisis in Ireland. Greece almost debt default occurred, the Irish and the outbreak of the debt problem, igniting concerns about the future of the euro area.

He said: "We must recognize that the Irish need the right guidance, there are still some time to do this, but time is not unlimited."