ID :
17901
Wed, 09/03/2008 - 14:06
Auther :
Shortlink :
http://m.oananews.org//node/17901
The shortlink copeid
OECD Cuts Japan GDP Growth Estimate for 2008 to 1.2 Pct
Brussels, Sept. 2 (Jiji Press)--The Organization for Economic
Cooperation and Development said Tuesday that Japan's gross domestic product is seen to grow a real 1.2 pct in 2008, weaker than the 1.7 pct growth forecast by the institution in June.
The country's GDP is likely to expand after an annualized decline
of 2.4 pct in April-June, but the upturn will be limited, said the
Paris-based organization.
The GDP contraction, led by the weakness in consumption and
exports, was the first in four quarters in Japan.
The OECD also cut its estimate on real GDP growth for the euro area
to 1.3 pct from 1.7 pct shown in its semiannual Economic Outlook report in June.
It said that the financial market turmoil, housing market downturns
and high commodity prices "continue to bear down on global growth."
For the United States, the OECD raised its real GDP growth estimate
for this year to 1.8 pct from 1.2 pct thanks partly to a set of
economy-boosting measures worked out by the administration of President George W. Bush.
But the OECD cautioned that housing prices in the United States
continue to fall, "threatening further defaults and foreclosures that may again depress prices and boost credit losses." Uncertainty as to the extent of weakness hinges importantly on how rapidly the effects of the economic measures will fade, it added.
The OECD expects that combined GDP in the Group of Seven major
industrial nations--Britain, Canada, France, Germany, Italy, Japan and the United States--will grow 1.4 pct in 2008, unchanged from its June projection.
For Britain, however, the OECD foresees a 0.3 pct annualized GDP
contraction for July-September and a 0.4 pct fall for October-December, thus suggesting that Britain is set to suffer a recession. For the whole of 2008, the country's real GDP growth is estimated at 1.2 pct, down from the 1.8 pct projected in June.
The OECD said that the G-7 countries face different policy
environments.
In the United States, underlying inflation is high, but does not
appear to have drifted up further, it said.
In Japan, inflation gauges have shown mixed signals, and
deteriorating business sentiment and the need for a buffer against the risk of deflation "argue for keeping monetary policy on hold," the OECD said.
Cooperation and Development said Tuesday that Japan's gross domestic product is seen to grow a real 1.2 pct in 2008, weaker than the 1.7 pct growth forecast by the institution in June.
The country's GDP is likely to expand after an annualized decline
of 2.4 pct in April-June, but the upturn will be limited, said the
Paris-based organization.
The GDP contraction, led by the weakness in consumption and
exports, was the first in four quarters in Japan.
The OECD also cut its estimate on real GDP growth for the euro area
to 1.3 pct from 1.7 pct shown in its semiannual Economic Outlook report in June.
It said that the financial market turmoil, housing market downturns
and high commodity prices "continue to bear down on global growth."
For the United States, the OECD raised its real GDP growth estimate
for this year to 1.8 pct from 1.2 pct thanks partly to a set of
economy-boosting measures worked out by the administration of President George W. Bush.
But the OECD cautioned that housing prices in the United States
continue to fall, "threatening further defaults and foreclosures that may again depress prices and boost credit losses." Uncertainty as to the extent of weakness hinges importantly on how rapidly the effects of the economic measures will fade, it added.
The OECD expects that combined GDP in the Group of Seven major
industrial nations--Britain, Canada, France, Germany, Italy, Japan and the United States--will grow 1.4 pct in 2008, unchanged from its June projection.
For Britain, however, the OECD foresees a 0.3 pct annualized GDP
contraction for July-September and a 0.4 pct fall for October-December, thus suggesting that Britain is set to suffer a recession. For the whole of 2008, the country's real GDP growth is estimated at 1.2 pct, down from the 1.8 pct projected in June.
The OECD said that the G-7 countries face different policy
environments.
In the United States, underlying inflation is high, but does not
appear to have drifted up further, it said.
In Japan, inflation gauges have shown mixed signals, and
deteriorating business sentiment and the need for a buffer against the risk of deflation "argue for keeping monetary policy on hold," the OECD said.
