Global economy likely to see early recovery: OECD

The Organisation for Economic Co-operation and Development (OECD) today said the global economy is likely to witness an early recovery than expected before.

"Recovery from the global recession is likely to arrive earlier than had been expected a few months ago but the pace of activity will remain weak well into next year," OECD, a grouping of rich nations, said in a report.

According to OECD, economic growth across the G-7 countries is expected to decline by 3.7 per cent this year, less than the June projection of 4.1 per cent contraction.

"The latest GDP forecasts for this year provide slightly improved outlooks for Japan and the Euro area, an unchanged overall projection for the US but point to a gloomier situation in the UK," it said.

The US, the UK, France and Japan are pasrt of the G-7.

Titled 'What is the economic outlook for OECD countries?', An interim assessment', the report noted economic news has been mostly favourable over the past few months.

"In the large emerging-market economies, which were not directly concerned by the meltdown in financial markets, the recovery in economic activity that began earlier this year is gaining momentum," Jorgen Elmeskov who is the acting head of Economics Department (OECD) said.

The strong rebound in GDP growth in Asian emerging markets is partly due to the various "policy stimulus" measures, it added.