World economic recovery underway but timid: OECD

PARIS, Nov. 19 (Xinhua) -- The Paris-based Organization for Economic Co-operation and Development (OECD) confirmed Thursday the worldwide economic recovery was underway, but still too timid to halt rising unemployment upsetting leading developed countries.

"The good news is that the recovery -- albeit a weak one -- is underway," said OECD Secretary-General Angel Gurria, adding that "with millions of jobs lost and public budgets under strain, governments will have to tread carefully in the months ahead."

OECD said in its latest Economic Outlook that the jobless rate is expected to peak in the first half of 2010 in the United States, but it may not be until 2011 that unemployment begins to fall in Europe.

Despite green sprouts across OECD countries, households and businesses need time to repair finances and reduce debts, in effect, a rebounded economic activity is being held back.

"With a subdued recovery and substantial spare capacity, inflation is projected to continue to fall well into 2010," the outlook forecasted.

Jorgen Elmeskov, acting chief economist of the OECD approved the stimulus packages launched by respective governments, saying they "have succeeded in limiting the severity of the downturn and fostering a recovery to a degree." But he also reminded that it's time "to plan the exit strategy from the crisis policies, even if its implementation will be progressive."

The economic organization announced in October that the unemployment rate in the OECD advanced economies reached 8.6 percent in August, with France's at 9.9 percent. The U.S. unemployment rate in October has risen to 10.2 percent for the first time in 26 years.