OECD Report: Thanks to China, the world economy resumed

[longriver]

The OECD had released its twice yearly economic outlook on Nov. 19. The organization cautiously assessed the economic performance of the world and said that China has helped to pull its member countries out of the recession although it is not an easy task to sustain the growth.

OECD said that “Growth in the O.E.C.D. area has resumed after the most virulent recession in decades”. The driving source of such growth is from non-OECD countries, especially Asian countries, which is highlighted by China’s strong performance. The growth rate of OECD memberes is assumed to “fluctuate around a modest underlying rate for some time to come”.

According to the statistics from the World Bank, the aggregate GDP of OECD member countries took up to 71% of the world total volume in 2007. However, some developing countries which enjoy a much faster economic growth is not included in this organization.

Benefitted from the comparatively loose bank loans and the economic stimulation project of RMB4000 billion, China’s economy is enlarging in much larger steps. The OECD estimated that China’s economic growth rate will be 8.3%, which is a little lower than 8.5%, the estimation of IMF.

The report also stated that the aggregate GDP of OECD members will decrease 3.5% although the economic growth resumed this year. The estimated unemployment rate of 2009 will increase from 8.2% in 2009 to 9% in 2010 and will decrease to 8.8% in 2011.

The current fiscal policies that each countries applied suit the situation and will further stimulate the economy. But governments of member countries should consider ways to end such fiscal stimulation measures and adjust the interest rates back to the normal level.

From Global Times Forum

 

[Douger]

The problem is the US isn't part of "that" world............
China and the others are reaching out to other countries that have resources and actually produce things they want/need to buy.

That leaves the US and it's mommy, Not so Great Britistan, out of the picture.
Well. The Brits know how to rockNroll and Amurkastan is the porn capital of Earth, one Nation under God...........and Larry Flint.....so those 'exports" will remain strong and in more and more demand as the women of the world continue stuffing their fat asses with " Good ole Amurkin double bacon cheeseburgers" and Kentuckistans steroid chicken.

 

[longriver]

Why do you say that the US is not in that "world"?

 

[The_Halfmoon]

I like the article, and hope it is correct. But I think China is fudging numbers.

but the implication is that China was able to recover and produce 8% growth when the financial world disintegrated only a year ago

Since we all know China's economy is essentially all export based, we have to make the assumption that China switched to an economy of internal consumption. China is absolutely able to do this, but in this short period of time? That seems unlikely. In fact it seems almost impossible, because it would take it a few years at least to make that switch.

What is perhaps happening is that the Chinese are hording raw materials, and building up inventory in hopes of dumping it on the market in better economic times.