OECD: Positive outlook for member economies, slowdown in China

12 March 2012 13:50  [Source: ICIS news]

LONDON (ICIS)--Indicators for the economies of Organisation for Economic Co-operation and Development (OECD) member countries are pointing to a “positive change in momentum”, with China and Brazil the only nations that could see a slowdown, the organisation said on Monday.

Composite leading indicators (CLIs), which are designed to anticipate turning points in economic activity, suggest the US and Japan are “continuing to drive the overall position”.

The CLIs showed that the US saw the joint largest increase in economic growth month on month in January, with a 0.7% rise, while Japan’s economy rose by 0.5%.

The OECD added that stronger signals are beginning to emerge within all other major member economies and the eurozone area.

According to the CLIs, OECD economies grew by 0.4% month on month in January, while the eurozone area grew by 0.2%.

It added that India and Russia are also showing stronger signs of a positive change in growth momentum.

India matched the US with a 0.7% month-on-month increase in January, while Russia’s economy grew by 0.2%, according to the CLIs.  

However, China and Brazil are continuing to point to below-trend growth, it said.

Brazil’s economy dropped by 0.2% month on month in January according to the CLIs, while China’s fell by 0.6%, it added.  

Looking to the outlook in Asia, the OECD development centre’s Asian Business Cycle Indicators showed weak growth momentum in most Asian and Southeast Asian Nations (ASEAN) economies, with some signs of improvements.

By: Leigh Stringer
+44 208 652 3214

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