The Organization for Economic Cooperation and Development (OECD) said that the deepest global recession in more than 60 years is close to bottoming out, but recovery will be weak unless governments do more to remove uncertainty over banks' balance sheets. In its half-yearly economic outlook, OECD said it expects its member countries' economies to shrink by 4.1% this year, with only government rescue measures heading off an even worse decline.
The OECD expects the U.S. economy to shrink by 2.8% this year after 1.1% growth in 2008. Japanese output is likely to contract by 6.8% this year and the 16 nation euro-zone will likely shrink by 4.8%.
The OECD forecast a return to growth in all three regions next year, with overall growth across its membership expected to average 0.7% in 2010, according to the report.
World economic growth, which the OECD defines as its members, plus Brazil, Russia, India, and China, will rebound to 2.3% next year from a decline of 2.2% in 2009.
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