The global recovery would higher than expected.

Cargo Terminal of the port of Piraeus, bought by China's Cosco in 2009.Keywords: recovery, growth, overheating, PARIS, OECD.

The Organization for Economic Cooperation and Development has reviewed all of its economic forecasts upward. The euro zone should remain in the background but the rebound to come in the rest of the world.
The economic recovery is faster and stronger than expected. The Organization for Economic Cooperation and Development (OECD) has revised upwards its growth forecast 2010 and 2011. After contracting by 0.9% in 2009, the global economy should grow by 4.6% in 2010 and 4.5% in 2011, against 3.4% and 3.7% projected in the last prospective study, published last November.
"But the risks to global recovery" seem "higher today because of volatile markets sovereign debt" and the reappearance of "global imbalances", tempers the OECD.

European weakness:
Growth forecasts for the euro area have been revised upwards, but still low at 1.2% in 2010 and 1.8% respectively in 2011 against 0.9% and 1.7% as initially planned.
In France, "the recovery is initiated," says the OECD. Growth should reach 1.7% in 2010 and 2.1% in 2011 "thanks to business investment, exports and end of destocking," says the OECD. Unemployment should continue to increase and then "fall back little by little" in 2011.
The euro area is driven by the effects of recovery plans and international trade, which is expected to jump 10.6% in 2010 and 8.4% in 2011. In this context, "there is no risk of double recession in the euro area, assured in an interview with Le Figaro chief economist of the OECD, Pier Carlo Padoan.
However, "the difficulties encountered by the peripheral countries (Greece, Ireland, Spain, Portugal) to restore their competitiveness and the state of public finances could complicate their recovery," notes the OECD and "increased risk". These countries have introduced severe discipline plans in recent months to adjust their public finances.

American Dynamism:
U.S. growth on the other hand, is more dynamic than originally planned, according to the OECD, which assumes a recovery of about 3.2% in 2010 and 2011, against 2.5 and 2.8% estimated in the previous report.
One of the strongest upward revisions, however, concerns Japan. The land of the Rising Sun should see its economy rebound from 3% in 2010 and 2% in 2011. The OECD projected growth of initially respectively 1.8% and 2%.

Overheating:
India and China:
However, overheating is threatening China and India that make the trade, the OECD warned. To avoid this type of slippage, Calcutta and Beijing must "strengthen much harder for monetary policy (...) in order to counter inflationary pressures and reduce the risk of speculative bubbles."