O.E.C.D. Lowers Global Outlook; Euro Area M3 Growth Eases

Arthi Gupta
28 Nov, 2011
New York City

The O.E.C.D. lowered global growth outlook and warned EU leader to take decisive actions. Euro-zone money supply growth slowed but Swedish trade surplus grew in October. Manufacturing sector confidence in Italy improved in November.

[R]2:00 PM Frankfurt – The O.E.C.D. lowered global growth outlook and warned EU leader to take decisive actions. Euro-zone money supply growth slowed but Swedish trade surplus grew in October. Manufacturing sector confidence in Italy improved in November.[/R]

O.E.C.D Lowers Global Growth Outlook

The Organization for Economic Cooperation and Development lowered its global growth outlook. The Paris based research organization said global growth will ease to 3.4% in 2012 from 3.8% in the current year.

In May, the O.E.C.D had projected 4.2% growth this year and 4.6% for 2012.

Euro area growth is forecast to slow down from 1.6% this year to 0.2% next year, rising to 1.4% in 2013.

The Paris based research group also warned that the problems that started in Greece almost two years ago are likely to spread to larger and more diversified economies that would “massively escalate economic disruption.”

O.E.C.D.’s chief economists Pier Carlo Padoan said, “Policy-makers fail to see the urgency of taking decisive actions to tackle real and growing risks to the global economy.”

Euro-zone M3 Growth Eases

Euro-zone annual growth rate of the broad monetary aggregate M3 eased to 2.6% in October, from 3% in September, the European Central Bank said in a report on Monday.

Loans to private sector rose 2.7% annually in October after rising 2.5% in September.

German Sentiment to Improve]

German consumer sentiment is set to improve in December, survey data from the market research group GfK showed today.

The forward-looking consumer confidence rose to 5.6 points from a revised value of 5.4 points in November.

Italian Manufacturing Confidence Improves

Manufacturing confidence in Italy increased in November, data released by statistics office Istat showed.

The seasonally adjusted manufacturing confidence index rose to 94.4 in November from 94.2 in October.

Sweden Surplus, Retail Sales Rise

Sweden''s trade surplus grew in October from a year ago as the increase in exports exceeded the import growth, Statistics Sweden reported on Monday.

The trade surplus increased to SEK 7.8 billion from SEK 5.5 billion in the prior year. Exports grew 3% from a year ago to SEK 103.3 billion. Imports climbed 1% annually to SEK 95.5 billion.

Separately, seasonally adjusted retail sales in Sweden rose 0.4% on a monthly basis in October, data from Statistics Sweden showed.

Hungary''s Aug-Oct. Jobless Rate Up

Hungary''s unemployment rate rose 10.8% during August to October compared to the jobless rate of 10.7% during July to September, data from the Central Statistics Office showed.

The number of unemployed totaled 468,000. Around 48% of unemployed people had been searching for a job for one year or more, data showed. The average duration of unemployment was 17.7 months.