OECD: World economy picking up but Europe lagging


The global economy begins to rebound, but the lag, even in the beginning to see the unemployment rate increases, are still too high, is a leading international economies said on Thursday.
The organization for economic cooperation and development is expected, in Japan and the United States in the first half of 2013 growth. In addition, while Germany will rebound strongly, it says, other countries using the euro contracts, or only slow growth.
In the interim assessment, the key to this group leading the industrial economy, the organisation for economic co-operation and development said that the European central bank needs to do more to encourage bank lending and economic growth.
Terminal, for example, the organization for economic cooperation and development carlo padoan, chief economist, said the central bank has a larger space, at a relatively low interest rates, even if they are already very low. He also said that the European central bank should follow the U.S. federal reserve method to explain their ideas and plans to provide more information in the future.
Report, as the organisation for economic co-operation and development on updated economic forecasts, matters needing attention, the countries using the euro progress in reducing their debt, but some should be allowed, in order to meet their goals more slowly, in order to temper the impact on the economy.
Padoan is careful to point out, the organization for economic cooperation and development called on European countries to give up a lot of people to reduce their debts deep budget cuts and tax increases. Euro zone countries, he says, must continue to reduce structural deficits - that is, because insist on long-term deficit continue to overspend. This structural deficits and debt in European countries, led to the current crisis has made a contribution.
But he said the eurozone deficit reduction speed too fast, should show flexibility, because you can hammer growth.
"Nominal deficit target is likely to be missed," he told reporters. "This is a tragedy, as long as everyone is very clear, pursue and realize the goal of structure."
He also called for deficit countries, carefully choose not add to high unemployment. Even in the country have started to increase, such as the United States, the unemployment rate is still higher than before the crisis.
Padoan said he wants to in Cyprus, recently for help, will have a limited effect, the euro zone the rest. Some people worry, very public indecision, Cyprus will how to improve its stock bank bailout plan - including tax the preliminary plan of the insured deposits - raised questions about the safety of all Banks in the euro area.
"In fact, the overall systemic risk has fallen in the region will not change what happened in Cyprus," he said. "This has been a very firmly to protect deposits, real deposit, which means that less than 100000 (euro).

<>OECD: World economy picking up but Europe lagging

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