| Author (Corporate) | Organisation for Economic Co-operation and Development (OECD) |
|---|---|
| Series Title | Press Release |
| Series Details | 25.11.14 |
| Publication Date | 25/11/2014 |
| Content Type | News |
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Modest global economic forecasts, continuing high unemployment, and downshifts in potential output should spur governments with a greater sense of urgency to fully employ monetary, fiscal and structural policy levers to support growth, notably in Europe, according to the OECD Economic Outlook published on the 25 November 2014. The euro area was projected to grow by 0.8% in 2014, before slight acceleration to a 1.1% rate in 2015 and a 1.7% rate in 2016. A prolonged stagnation in the euro area could drag down global growth and have knock-on effects on other economies through trade and financial links. A scenario in the Outlook showed how a negative shock could lead an extended period of very low growth and very low euro inflation, resulting in unemployment remaining at its current unacceptably high level. 'With the euro zone outlook weak and vulnerable to further bad news, a stronger policy response is needed, particularly to boost demand', said OECD Chief Economist Catherine L Mann. 'That will mean more action by the European Central Bank and more supportive fiscal policy, so that there is space for deeper structural reforms to take hold. A Europe that is doing poorly is bad news for everyone'. |
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| Source Link | Link to Main Source http://www.oecd.org/newsroom/stronger-policy-response-needed-to-avoid-risks-to-growth-especially-in-the-euro-area.htm |
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| Subject Categories | Economic and Financial Affairs |
| Countries / Regions | Europe |
