The rate of global economic growth increased during the second quarter of 2014, according to new analysis by the Organization for Economic Cooperation and Development (OECD).
Although any sign of uniform growth is greeted with enthusiasm, the modest rise for this period suggests that a speedy recovery may take longer, News Now reported Friday.
The international organization revealed that the collective economic output of 20 of its members – which have the largest economies – increased slightly by 0.8 percent in the first three months to June.
This was up from the 0.6 percent recorded during the first quarter of 2014. The year-to-year growth rate also slowed during the first three months to March, dipping from 3.4 percent to 3.2 percent.
“The OECD noted that the performance of G20 members was uneven during the quarter, with four large economies experiencing contractions: Brazil, Germany, Italy and Japan,” the Wall Street Journal reported. “In addition, growth slowed in India, Australia and South Korea.”
One of the reasons behind the slowdown in recovery is to do with the rise of armed conflicts around the world.
From recent events in the Middle East to the rise of the Islamic State in Syria and Iraq to the ongoing crisis in Ukraine, 2014 has been defined by a series of destabilizing clashes.
emerging market
The International Monetary Fund (IMF) reported back in April that while global activity had “broadly strengthened” – thanks largely to advanced economies – there remains risk, especially in emerging market economies.
“Advanced economy policymakers need to avoid a premature withdrawal of monetary accommodation,” the IMF said at the time.
“Emerging market economy policymakers must adopt measures to changing fundamentals, facilitate external adjustment, further monetary policy tightening, and carry out structural reforms.”
Last week OECD in its report said that economic growth is likely to remain at modest levels in most of the world’s large economies over the coming months, a sign that 2014 will fail to deliver on hopes of a significant pickup in the pace of the recovery.
The Paris-based research body’s gauge of future economic activity suggests growth in most developed economies will remain around current rates, with large developing economies making a smaller contribution to global economic growth than they did in the years following the onset of the financial crisis of 2008. As a result of that combination, global growth is unlikely to pick up significantly this year.
