OECD: Little risk of US having double-dip recession

22 September 2010

The Organization for Economic Cooperation and Development (OECD) has asserted that the US economy will escape falling into a double-dip recession.

Its report forecast growth of 2.6 per cent in both 2010 and 2011, although it warned unemployment levels are unlikely to be markedly reduced.

Angel Gurria, the OECD secretary-general, said: "We don't see a risk of a double-dip recession.

"That said, we don't see either a recovery that is strong enough to put a significant dent in unemployment."

The OECD pointed out the US recession, which officially ended in June 2009, lasted for 18 months – making it the longest downturn since the Great Depression.

Last month, Ed McKelvey, the senior US economist for Goldman Sachs, forecast that the chance of America going back into recession stood at between 25 per cent and 30 per cent.

He stated that signs of slower US growth have "multiplied" in recent months, reported Bloomberg.

By Claire Archer

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