Global economic growth prospects better, says OECD

LONDON: World economic activities are picking up with better growth prospects seen in the US, Japan and other major developed nations while emerging countries continue to drive the momentum, Paris-based OECD said today.

However, the think tank said that continuing crisis in the euro zone is delaying "a meaningful recovery".

"Global economic activity is picking up, but the continuing crisis in the euro area is delaying a meaningful recovery," the Organisation for Economic Cooperation and Development (OECD) said.

In its latest Interim Economic Assessment, OECD -- a grouping of mostly developed nations, has projected G7 economies to grow at an annualised rate of 2.4 per cent in the first three months of this year.

US, Japan, Germany, France, Italy, UK and Canada are part of G7.

OECD Chief Economist Pier Carlo Padoan in a statement said that bold policy action remains necessary to ensure a more sustainable recovery, particularly in the euro area, where growth is uneven and remains slower than in other regions.

"The outlook in the first half of 2013 is for a return to moderate growth in the US and an acceleration from low levels," the grouping said.

Three major European economies -- Germany, France and Italy - are projected to expand by 0.4 per cent during the 2013 first quarter.

"Growth among emerging economies remains much faster than that of advanced countries on average, although with significant differences across countries.

"Given the substantial share of the world economy now accounted for by emerging economies, they will again drive growth at the global level this year," OECD said.

According to Padoan, monetary stimulus remains necessary but needs vary across countries.

"In the euro area, there is still some scope to ease monetary policy further, given weak demand and inflation well below the European Central Bank's objective, while further action is needed to repair the transmission mechanism," he added.