OECD economies expand 0.7% in Q1 FY10

Indicating a slow recovery, economies in the OECD region -- a grouping of mostly developed nations -- grew 0.7 per cent in the first three months of 2010 compared to 0.9 per cent expansion in the December quarter.

The countries in the Organisation for Economic Cooperation and Development (OECD) area account for more than 60 per cent of the global economy.

"Gross domestic product (GDP) in the OECD area rose by 0.7 per cent in the first quarter of 2010, the fourth consecutive quarter of growth for the area," the grouping said in a statement today.

Meanwhile, India, one of the fastest growing economies in the world, today reported an 8.6 per cent growth in the first quarter of 2010.

OECD economies together have been expanding since the second quarter of 2009, when the growth rate stood at 0.3 per cent.

The region's economy had contracted 2.4 per cent in the first three months of 2009.

The OECD bloc, which includes heavyweights like the US and Germany, clocked slow growth in the first quarter compared to 0.9 per cent expansion in the last three months of 2009.

In the backdrop of the spiralling sovereign debt crisis, the euro-area economy rose just 0.2 per cent in the first quarter of 2010. The eurozone is a grouping of 16 nations, including crisis-hit Greece and Portugal, which share the common currency euro.

"GDP growth was more subdued in both the euro area and the European Union (0.2 per cent)," the statement noted.

On the other hand, OECD members such as the US and Japan registered good first quarter expansion.

"Strong GDP growth continued in the United States (0.8 per cent) and Japan (1.2 per cent)," it added.