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The Organization for Economic Cooperation and Development (OECD) more than doubled its 2010 forecast for developed nations, saying that strong growth in Asia – particularly China – would help pull the "more feeble" West out of its financial malaise.
After predicting in June that the combined economy of its 30 member nations would grow 0.7% in 2010, the OECD raised its forecast for developed economies to grow 1.9% next year and 2.5% in 2011. Economic output will contract by 3.5% this year, the Paris-based organization said today.
"We now have the numbers that support a recovery in motion," Jorgen Elmeskov, the OECD's acting chief economist, told Bloomberg News. "It's still a slow recovery because of considerable headwinds from the need to adjust the balance sheets of households, enterprises and financial sectors."
The OECD cautioned that the recovery is still fragile in developed nations, while pointing to China as the main catalyst for a global rebound.