It argues that an even worse outcome is possible in its “downside scenario” where a further loss of confidence would risk tipping the OECD as a whole into recession with dramatic knock-on effects for the global economy. The OECD’s strategic response to such an event proposes fiscal stimulus in around half of the OECD countries together with “structural reforms”.

Commenting on the OECD’s projections and proposals, the Trade Union Advisory Committee (TUAC) General Secretary John Evans said, “the OECD figures even in a ‘muddling through’ scenario present an unacceptable economic and social prospect. Without waiting for a further deterioration the countries that the OECD itself has identified as having the fiscal space should give stimulus to aggregate demand to kick-start the global economy.”

Bernadette Segol, General Secretary of the European Trade Union Confederation (ETUC), said, “the OECD warning of further contagion in the Euro-zone shows that European countries must now agree that debt must be mutualised in Europe and the European Central Bank must expand its role to under-write the Euro”.

Sharan Burrow, General Secretary of the International trade Union Confederation (ITUC), said, “Jobs must now be at the centre of recovery measures if unemployment is not to surge again. The OECD calls for structural reforms when what are needed are structural measures to train and re-equip workers with skills as well as the active policies that create jobs for young people. We will not accept structural reforms that attack workers’ security and rights.”

See the details of the Economic Outlook are available at the following URL