Outlook for OECD, non-OECD nations weakening
Composite Leading Indicators for October 2008 continue to point to a weakening outlook for all the major seven economies.
By ET Online |
MUMBAI: OECD Composite Leading Indicators for October 2008 continue to point to a weakening outlook for all the major seven economies. However, the outlook has significantly deteriorated compared to last month in the major non-OECD member economies with China, India and Russia also facing a strong downturn.
The OECD CLI is designed to provide early signals of turning points in business cycles- fluctuations of the economic activity around its long term potential level. CLI provide qualitative rather than quantitative information on short-term economic environment.
From the below table one can easily understand the current situation of the global economy.
Composite Leading Indicator
Four cyclical phases form the basis of this qualitative approach: expansion - CLI increasing and above 100; downturn - CLI decreasing and above 100; slowdown - CLI decreasing and below 100; recovery - CLI increasing and below 100.
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