International Trade & Logistics: OECD Forecasts More Goods in Supply Chain says new report
According to a new report from the Organization for Economic Cooperation and Development, trade flows are ramping up.
in the News
Swisslog wrote the book on AutoStore Gap Inc. takes steps to expand its e-fulfillment network Don’t call freight volume recovery a comeback FTR Shippers Conditions Index falls but remains in growth mode National diesel average falls, for week of March 27, reports EIA More NewsAccording to a new report from the Organization for Economic Cooperation and Development, trade flows are ramping up.
Economic activity in OECD countries is picking up faster than expected but volatile sovereign debt markets and overheating in emerging-market economies are presenting increasing risks to the recovery, according to the OECD’s latest Economic Outlook.
Gross domestic product (GDP) across OECD countries is projected to rise by 2.7 percent this year and by 2.8 percent in 2011. These are upward revisions from the previous, November 2009, forecasts of OECD-wide GDP growth of 1.9 percent in 2010 and 2.5 percent in 2011.
In the U.S., activity is projected to rise by 3.2 percent this year and by a further 3.2 percent in 2011. Euro area growth is forecast at 1.2 percent this year and 1.8 percent next while, in Japan, GDP is expected to expand by 3.0 percent in 2010 and by 2.0 percent in 2011.
Trade flows are rising again. Strong growth in China and other emerging markets is helping to pull other countries out of recession. But at the same time, the risk of overheating and inflation is growing in emerging markets. A boom-bust scenario cannot be ruled out, requiring a further tightening in countries such as China and India.
“The knock-on effect would be slower growth in other regions,” spokesmen said. “Exchange rate flexibility could ease some of the pressure on Chinese monetary policy and provide more scope for addressing domestic inflation.”
Instability in sovereign debt markets poses another serious risk. It has highlighted the need for the euro area to strengthen its institutional and operational architecture. Bolder measures need to be taken to ensure fiscal discipline, said the OECD report.
About the Author
Patrick Burnson, Executive Editor Mr. Burnson is a widely-published writer and editor specializing in international trade, global logistics, and supply chain management. He is based in San Francisco, where he provides a Pacific Rim perspective on industry trends and forecasts. He may be reached at his downtown office: [email protected].Subscribe to Supply Chain Management Review Magazine!
Subscribe today. Don't Miss Out!Get in-depth coverage from industry experts with proven techniques for cutting supply chain costs and case studies in supply chain best practices.
Start Your Subscription Today!
Article Topics
It’s high time to go beyond visibility Driving supply chain flexibility in an uncertain and volatile world View More From this Issue