Home / Knowledge / News / Textiles / Euro area crisis slowing global economy - OECD

Euro area crisis slowing global economy - OECD

10
Sep '12
The global economy is slowing, with key European countries entering a recession that is now having an impact worldwide, the Organisation of Economic Cooperation and Development (OECD) said in its latest Interim Economic Assessment.

The Assessment, presented in Paris by Chief Economist Pier Carlo Padoan, says that the G7 economies are expected to grow at an annualised rate of just 0.3 percent in the third quarter of 2012 and 1.1 percent in the fourth. It warns that the continuing euro area crisis is dampening global confidence, weakening trade and employment and slowing economic growth for OECD and non-OECD countries alike.
 
“Our forecast shows that the economic outlook has weakened significantly since last spring,” Mr Padoan said. “The slowdown will persist if leaders fail to address the main cause of this deterioration, which is the continuing crisis in the euro area.”
 
The OECD projects that the euro area’s three largest economies – Germany, France and Italy – will shrink at an annualised rate of 1 percent on average during the third quarter and at 0.7 percent in the fourth.
 
Seen individually, the German economy is expected to contract at an annualized rate of 0.5 percent in the third quarter and at 0.8 percent in the fourth. The French outlook is slightly better, with contraction at an annualised rate of 0.4 percent in the third quarter followed by a slight pick up in growth at 0.2 percent in the fourth. In Italy, the deep recession will continue with contraction at an annualised rate of 2.9 percent in the third quarter and 1.4 percent in the fourth.
 
The weak growth outlook is expected to push unemployment beyond today’s already high levels. “Resolving the euro area’s banking, fiscal and competitiveness problems is still the key to recovery,” Mr Padoan said.
   
While the United States is affected by the euro area slowdown, growth is nonetheless projected at an annualised rate of 2 percent in the third quarter and a 2.4 percent pace in the fourth. Canada is set to grow at a rate of 1.3 percent during the third quarter and 1.9 percent during the fourth. The Japanese economy  is projected to contract at an annualised rate of 2.3 percent during the third quarter and hover around a zero growth rate in the fourth.
 
“A number of downside risks threaten the outlook, including the potential for further increases to already high oil prices, excessive fiscal contraction, notably in the United States in 2013, and further declines in consumer confidence linked to persistent unemployment,” Mr Padoan said.

Organisation of Economic Cooperation and Development (OECD)


Must ReadView All

Pic: Shutterstock

Textiles | On 24th Jul 2021

5.2 lakh Zimbabwean homes to gain from Pfumvudza cotton inputs scheme

At least 520,000 households in the marginalised zones of Zimbabwe...

Pic: Lanzatech

Textiles | On 24th Jul 2021

US' LanzaTech, Lululemon to make yarn from recycled carbon emissions

LanzaTech has joined hands with Lululemon athletica, an athletic...

Pic: HOdo Group

Apparel/Garments | On 24th Jul 2021

Chinese apparel firm HOdo exports carbon-offset clothing

Apparel brand HOdo has claimed producing and exporting China’s first...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

There was a certain switch, but it was not 100% pandemic related

Textile Industry, Head honchos

Textile Industry
Head honchos

Occam's razor principle and purpose-driven innovations

Textile Industry, Head honchos

Textile Industry
Head honchos

Donating 20,000 N95 masks to hospitals & NGOs

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Sanjay Jhunjhunwalla,

Sanjay Jhunjhunwalla

In the financial hub of eastern India, Kolkata, a humble production...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Silverio Baranzano, Fitesa

Silverio Baranzano
Fitesa

Fitesa is a leader in the nonwoven fabrics industry, specialising in...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Niti Singhal, Twee In One

Niti Singhal
Twee In One

Best known for convertible clothing, Indian brand Twee In One by designer...

Archana Jaju, Label Archana Jaju

Archana Jaju
Label Archana Jaju

<b>Archana Jaju</b>’s Hyderabad-based eponymous label works with artisans...

Abhishek Bajaj & Samiksha Bajaj, Samshek

Abhishek Bajaj & Samiksha Bajaj
Samshek

Samshek is a fashion forward tech brand which combines digital experience...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2021

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search