OECD predicts emerging economies will take the lead in recovery

Paris, June 24 (OECD)--The Economic Outlook report, released 24th by the Organisation for Economic Co-operative and development, says some emerging economies are starting to recover and will rebound sharply ahead of advanced economies next year, with China, India and Brazil growing even higher next year than they did in 2008. The report says major emerging economies, such as China, India and Brazil, are already taking the lead in starting a recovery.　　The report predicts that China's gross domestic product will grow by 7.7% per cent this year and will grow by 9.3% next year, thinking that the expansion of credit lending has boosted China's economic recovery and that the public debt burden of filial piety gives the Chinese government ample room to pursue fiscal stimulus. The report notes that the country's economic situation has also improved as the Indian government continues to introduce stimulus policies.　　The report predicts that India's growth rate will slow to 5.9% this year, but as the world economy recovers and financial markets turn warmer, India's growth rate will reach 7.2% next year, more than 2008 years in 6.5%. The report argues that other major emerging economies may shrink or grow sharply this year, but that there will be a big rebound next year.　　Russia's economy will fall sharply by 6.8% this year, but will grow 3.7% per cent next year, while Brazil, South Africa and Chile will fall 0.8%, 2% and 1.6% respectively this year, but next year they will grow by 4%, 3.7% and 3% respectively. The report is "cautiously optimistic" about the economic prospects of the developed world, and argues that the economies of the developed world seem to be bottoming out. The GDP of the 30 OECD countries is expected to shrink by 4.1% this year and grow by 0.7% next year. This is the first time in two years since the subprime crisis, the OECD has raised its economic growth forecasts.