As advanced economies grow,emerging ones struggle

Led by firm US growth,the outlook is gradually improving for advanced economies.

Written by Reuters | Paris | Published: September 4, 2013 1:34:01 am

Led by firm US growth,the outlook is gradually improving for advanced economies while even crisis-weary Europe is at last joining the recovery,the OECD said on Tuesday.

Nonetheless,a slowdown in many emerging economies meant that global growth would remain sluggish,the Organisation for Economic Cooperation and Development said. “The bottom line is that advanced economies are growing more and emerging economies are growing less,” OECD chief economist Pier Carlo Padoan said.

Among major economies,the United States would lead the recovery with growth this year of 1.7 per cent,the think tank said,trimming its estimate from a May forecast of 1.9 per cent.

Boosted by massive monetary stimulus from the central bank,Japan was seen on course for growth this year of 1.6 per cent.

Though major developed economies are picking up,a slowdown in many emerging countries was likely to weigh on broader global growth,the OECD said.

China was the exception among emerging economies,with its growth forecast to accelerate over the course of the year and achieve a rate of 7.4 per cent this year.

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