OECD sees
- 2009 GDP in OECD area -3.5%, +1.9% in 2010, +2.5% in 2011
- Assumes Fed, ECB rates on hold until “close to end 2010″
- 2009 World GDP -1.7%, +3.4% in 2010, +3.7% in 2011
- BOJ rates should stay on hold through 2010 and 2011 due to deflation
- 2009 Euro area GDP -4.0%, +0.9% in 2010, +1.7% in 2011
- BOE rates “normalisation will probably need to start in 2011″
- 2009 U.S. GDP -2.5%, +2.5% in 2010, +2.8% in 2011
- 2009 UK GDP -4.7%, +1.2% in 2010, +2.2% in 2011
- 2009 Japan GDP -5.3%, +1.8% in 2010, +2.0% in 2011
Other snippets
- Due to debt rise, fiscal consolidation vital but not at pace that undermines recovery
- Risk of disorderly exchange rate adjustment cannot be ruled out
Comments from OECD’s chief economist
- Low inflation means China has no urgent need to shift yuan policy
- China’s need to change policy “prospective rather than acute”
- World trade growth will help euro zone even if strong euro hits competitiveness
- Part of recent dollar weakness due to loss of “safe haven” effect
- OECD’s world trade growth forecasts might be on conservative side (SEE, HE’S ALREADY TELLING YOU THEY’RE PROBABLY WRONG)