Experts predict that China’s booming economy will overtake the US in terms of gross domestic product in less than two decades.
Developed economies have made a comeback after years of slow growth, while a slowdown continues to plague emerging economies, the Organization for Economic Cooperation and Development (OECD) says.
The gross domestic product of the G-7 countries have improved since the shrink they experienced in the last quarter of 2012, and are estimated to expand at an annualized rate of about 2.5 percent in the second half of this year, OECD deputy chief economist Joergen Elmeskov said Tuesday.
The organization – comprised of 34 advanced and emerging countries – estimated continual growth for the two largest economies that use the euro, with Germany growing 0.7 percent this year, up from its 0.4 percent estimate in May and France, which is expected to increase 0.3 percent.
The OECD lowered its forecast for the US to 1.7 percent, down from its Mayâ„¢s prediction of 1.9 percent.
Reports that the US would cut back on its monetary stimulus program have harmed emerging economies, with businesses and consumers relying on the low interest rates and friendly loans that loose monetary policy provides, the OECD said.
The organization urged central banks to continue with the loose monetary policies to help economies recover.
This is while, the biggest of the emerging economies, China, witnessed a growth of 7.4 percent – although lower than the forecasted measure of 7.8 percent.
Experts predict that China’s booming economy will overtake the US in terms of gross domestic product in less than two decades.
GMA/PR
Republished from: Press TV