The Organization for Economic Cooperation and Development (OECD) expects the recession to ease this year, but warns that recovery will not be immediate, according to Reuters. The OECD said yesterday that the U.S. markets were still hindered by toxic securities and a weak housing climate, but that 2010 should see moderate economic growth.
In it’s bi-annual report, the OECD predicted a 2.8 percent contraction of U.S. output this year, followed by growth of 0.9 percent in 2010.
The OECD advised the U.S. to work to continue removing toxic mortgage-based assets from banks’ balance sheets in order to promote investment. “Restoration of trust in financial intermediaries and markets is vital for a sustained and strong economic recovery to occur,” said the report.
Housing markets, while still weak, may soon reach a turning point, according to the OECD, which noted that the supply of unsold homes was declining in relation to demand.