The Organization for Economic Co-operation and Development (OECD) has cautioned that the nascent economic recovery remains fragile and faces significant risks. In its latest economic outlook, the OECD stressed the importance of maintaining government support until a self-sustaining recovery is firmly established.

Key Concerns

• Premature Withdrawal of Stimulus: The OECD warned that withdrawing stimulus measures too early could derail the recovery.
• Financial Sector Vulnerabilities: Lingering problems in the financial sector continue to pose a threat.
• Unemployment: High unemployment rates could dampen consumer spending and slow the recovery.

Recommendations

The OECD urged governments to:

• Maintain fiscal stimulus until the recovery is secure.
• Address remaining problems in the financial sector.
• Implement policies to support job creation.

The OECD acknowledged that the global economy is showing signs of improvement, but cautioned against complacency. Continued vigilance and policy support are essential to ensure a sustained and robust recovery.