Growth in the world’s industrialised economies has resumed after the most virulent recession for decades, the Paris-based Organisation for Economic Co-operation and Development on Thursday. But it warns that unemployment is set to continue to rise well into 2010 and to fall modestly the following year from a peak of more than 9 per cent of the workforce.
The Economic Outlook report forecasts a “modest” recovery with real gross domestic product growing by 1.9 per cent next year across the OECD, following a shrinkage of 3.5 per cent in 2009. It warned that in most economies’ growth was being held back by “still substantial headwinds”, as households, financial institutions, non-financial enterprises and, eventually, governments repair their balance sheets.
