Recovery 'self-sustained' - OECD
Growth in G7 countries is stronger than expected and could rise to a yearly rate of 3 per cent in the first half of 2011 because of "accelerating private sector investment and trade" – according to analysis by the OECD.
Presenting the organisation's interim economic assessment, chief economist Pier Carlo Padoan said: "The outlook for growth today looks significantly better than it looked a few months back." He added that the recovery was becoming "self-sustained" – meaning economies will need less fiscal and monetary support from governments.
The report acknowledges that sovereign debt risks in the eurozone periphery and further increases in oil prices caused by instability in the Middle East and North Africa could "act as a drag on economic activity".
The OECD did not include projections for Japan because of its unclear outlook as it recovers from the earthquake and tsunami. The G7 includes the United Kingdom, Germany, France and Italy as well as the United States, Canada and Japan.