OECD Forecasts Global Economy to Recover Next Year

The organization's chief economist expects growth in U.S., Japan, and euro zone, despite mounting "reform fatigue."

The Organization for Economic Cooperation and Development forecasts global economic growth will accelerate in 2014, with both the U.S. and Japan continuing to outpace the euro area.

“The global economy is moving forward and it is doing so at multiple speeds,” OECD Chief Economist Pier Carlo Padoan said in the Paris-based organization’s semi-annual Economic Outlook. Differing monetary and fiscal choices across the major developed economies are driving regional divergence with “each path carrying its own mix of risks,” he said.

Some Optimism

The OECD, which advises its 34 member governments on economic policy, sounded a more optimistic note than in recent reports, praising the U.S. for having “repaired” its financial system, welcoming Japan’s shift to a more stimulative monetary policy and noting that public debt levels in many euro-area countries will soon start to decline given the fiscal effort made over “several years.”

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