OECD bullish about 2010 recovery

Global economic recovery will be stronger than previously estimated this year, helped by robust growth in China and India, the OECD's Secretary General said on Monday.

"The global economy should be moving at 4 to 4.5 per cent, the OECD economy at around 2 to 2.5 per cent," OECD chief Angel Gurria told Reuters in an interview.

The OECD had predicted in November that the global economy would expand by 3.4 percent this year, after an estimated contraction of 1.7 per cent in 2009. OECD area growth for 2010 was then seen at 1.9 per cent.

"The reason why the global economy is going to grow faster is because China and India are pulling very hard," he said.

Governments should not yet withdraw economic stimulus measures, but they should indicate how they plan to return to sustainable fiscal and tax positions, the OECD chief said.

"You really have to start giving signals on how to land your plane, how you plan to normalise the fiscal situation, and these signals have to be given now," Gurria said.

- Reuters