OECD says wealthy nations gaining economic momentum

A new report says the economies in the world’s wealthiest countries are gaining momentum, while those in key developing countries are stabilizing or slowing.

The Paris-based Organization for Economic Cooperation and Development says its latest leading economic indicators show the economies are advancing in the 17-nation euro currency bloc, collectively the world’s largest economy, as well as in Japan and Canada.  It said growth is firming in the United States, with the single biggest economy, and in Britain.

Investment in emerging countries has weakened in recent weeks as investors have sought higher returns in the U.S. Interest rates on U.S. securities have risen as policy makers at the country’s central bank weigh whether to curtail their economic stimulus measures, which has led to withdrawal of financial support in developing countries.

The Federal Reserve policy makers are meeting next week, with some financial analysts predicting they will begin to curtail the $85 billion a month asset purchases they have used to boost the U.S. economic recovery from the depths of the 2009 recession.

In the eurozone, the OECD said Germany, France and Italy are gaining economic momentum.

But the report said the economic fortunes are slowing in two key developing countries, Brazil and India, while returning to normal trends in China and stabilizing in Russia.

Source: VOANews.com

(Photo: Darren Deans/sxc.hu)