The world's developed economies have slid into recession and will shrink further in 2009, according to the Organization for Economic Cooperation and Development (OECD). In its latest economic forecasts, the group said gross domestic product was likely to fall by 0.3% in 2009 for its 30 member countries, representing democracies with market economies. It said the U.S. economy would contract by 0.9%, Japan's by 0.1% and the euro area by 0.5%.
"The OECD area economy appears to have entered recession," said Jorgen Elmeskov, director of the policy studies branch and the OECD's economics department. He said that while the picture was uncertain "projections point to a protracted downturn" with recovery not likely before the second half of next year, with the U.S. leading the way out of recession.
The OECD forecast also predicts economies in all 30 OECD countries will contract by 0.3% in 2009. Unemployment, currently at 5.9% in OECD countries, is predicted to climb to 6.9% in 2009 and 7.2% in 2010.
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