Global economies on the mend, OECD says

Global economies are on the mend, but growth is likely to remain below trend in India, the OECD said today.
Looking at major global economies, an OECD statement said that "growth is returning to trend" in China, while in the United States the OECD's composite leading indicator (CLI) "continues to point to economic growth firming."
In the 17-nation eurozone, the CLI indicated "a gain in momentum," although no detailed growth forecasts were issued.
The Organisation for Economic Cooperation and Development encouraged Portugal meanwhile to pursue "ambitious and courageous reforms to restore the sustainability of public finances, reduce external imbalances, and put its economy back on a path of strong, jobs-rich growth."

The OECD's leading indicators are mainly designed to point to turning points in economic activity.
"In Japan, it indicates that growth should remain above trend," the OECD said, while in Germany, the biggest European economy, growth was tipped to return to its trend rate.

One less favourable outlook was issued for India, where the CLI "continues to indicate growth below trend."
In Italy, the third biggest eurozone economy, the data indicated a positive change in momentum.
A separate statement said: "Despite the hardships brought about by the crisis, Portugal is now faced with a unique opportunity to modernise its economy, as well as building a fairer, more cohesive society and a more efficient, dynamic public administration."

The OECD noted that the country has "recorded one of the sharpest reductions in fiscal and external imbalances in the OECD since 2009."
That has come at a cost however, with unemployment hitting a record 17.7 percent in the first quarter of 2013 amid widespread public discontent with political leadership in Lisbon.
After suffering an economic contraction of 3.2 percent in 2012 and faced with a forecast decline of 2.3 percent this year, Portugal could nonetheless benefit from an expansion of business activity on the order of 3.5 percent by 2020, the OECD estimated.
"Further reforms could bring even higher gains," it added.