Saturday

13th Aug 2022

OECD raises eurozone growth forecasts

The eurozone is likely to grow by 2.7 percent this year, the OECD said on Tuesday (5 September) upgrading its growth forecasts for the 12-nation zone.

In its interim assessment, the Paris-based organisation raised its 2006 GDP growth forecast for the eurozone to 2.7 percent, up from 2.2 percent.

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  • Eurozone growth was partly due to transitory factors such as the World Cup (Photo: EUobserver)

According to the organisation, several "transitory factors" helped the recovery including the World Cup in Germany, spending in the German construction sector and the fall in unemployment rates across the eurozone.

Within the eurozone, the forecast for Germany has been raised to 2.2 percent from 1.8 percent and for France to 2.4 percent from 2.1 percent.

The OECD also indicated that the data for the first half of 2006 point to "some gradual rebalancing" of economic growth on both sides of the Atlantic but that this is only likely to be temporary.

"Following this catch up, growth is likely to slow somewhat in Europe whilst the US and Japanese expansions regain some momentum," OECD chief economist Jean-Philippe Cotis said.

Almost two-thirds of Europe in danger of drought

Data released by the European Drought Observatory show 60 percent of Europe and the United Kingdom is currently in a state of drought, with farming, homes and industry being affected. Drought conditions have also led to an increase in wildfires.

Droughts prompt calls to cut water use amid harvest fears

With the prolonged lack of rain and high temperatures, fears have emerged over water shortages and droughts decreasing crop yields — prompting calls to use less water and reuse urban wastewater for agricultural irrigation.

Brazil pitches itself as answer to Ukraine war food shortages

Brazilian president Jair Bolsonaro is pitching his Latin American country as the answer to the world food crisis following the war in Ukraine. The traditional wheat importer has now exported three million tonnes of the grain so far in 2022.

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