MercoPress. South Atlantic News Agency

Diverging growth rates in rich countries according to OECD report

US, Germany and Japan picking up pace

Growth rates in the world's developed economies are set to diverge, the OECD said, with the recovery losing steam in France, Brazil, Canada, China, Italy and Britain, but picking up pace in Germany, Japan and the United States.

The Organisation for Economic Co-operation and Development said its Composite Leading Indicator (CLI) for the OECD area remained unchanged for a fourth straight month in September at 102.8, suggesting economic expansion remained steady in the overall 33-nation bloc.

But the indicator masked differing growth patterns across major economies, with individual CLIs rising in countries such as Japan and the United States, but slipping back elsewhere.

“The CLIs show signs of continuing expansion in Germany, Japan, the United States and Russia, while pointing to a moderate downturn in Canada, France, India, Italy and the United Kingdom,” the OECD said in a statement.

The CLI for Japan rose to 103.2 in September from 103.0 the previous month, while Germany held steady at 105.8 and the United States edged up to 102.4 from 102.3 in August.

In contrast, Italy's CLI fell to 103.0 from 103.2, while the indicator for France declined to 101.9 from 102.0, and Britain slipped back to 102.4 from 102.5 previously.

The reading for the Group of Seven industrialised nations - Japan, the United States, Canada, Italy, France, Germany and Britain - remained unchanged in September at 102.9.

Among non-OECD member countries, Russia's CLI continued to rise in September, hitting 104.8 compared to 104.2 previously.

India, however, showed further signs of slowing, while Brazil and China's CLIs continued to point strongly downwards, the OECD said, suggesting that production levels are likely to fall below their long-term trend.