OECD: EU Looking Up, But Developing Countries Fall Behind
A report released by the Organization for Economic Cooperation and Development indicates that forecasts for economic growth are looking up for many developed countries, Reuters reports.
The numbers remain strong for Japan and Britain, both on track for 2013 growth rates of around 1.5 percent, while the United States decreased slightly to a projection of 1.5 percent as well. The forecast jumped from previous estimates for France and Germany, now predicted to come in with growth rates of 0.3 and 0.7 percent, respectively. While this is good news for the Eurozone as two of its leading economies are slated to turn around, many of the debt-laden southern countries, including Italy, are still forecasted to contract in 2013.
The report did not have as good news for developing countries, many of which are expected to be the victim of tapering quantitative easing policies expected from the Fed as the year wears on. Several of those countries, including India and Brazil, have seen large amounts of currency move out of the country since this May, the report details. In addition, it highlights industrial production, the growth of which has dropped to zero percent in developing countries for the first time in several years.