World economic slump over

[Tom Yossarian Joad]

http://www.reuters.co.uk/newsPackageArticle.jhtml?type=businessNews&storyID=409347§ion=finance

PARIS (Reuters) - Years of stagnation are over for the global economy and a strong economic recovery is well under way in the United States, where the "animal spirits" of times past are back in action, the OECD says.

In its twice-yearly Economic Outlook, the Organisation for Economic Cooperation and Development on Wednesday predicted pacy growth of 4.2 percent in the U.S. economy in 2004 after 2.9 percent this year -- compared to a paltry 0.3 percent in 2001 for example.

Japan is poised to pull out of the doldrums with growth of 2.7 percent this year and 1.8 percent in 2004 but the 12-nation euro zone will get off the ground a bit more slowly with growth of 0.5 percent this year and 1.8 percent in 2004, the OECD said.

"We're at last seeing recovery in both the United States and Japan," OECD chief economist Jean-Philippe Cotis told Reuters in an interview about the report.

He predicted that the main central banks would keep interest rates low for months to come until the rebound was more full-blown.

Cotis highlighted a "revival of 'animal spirits'" in the United States, a reference to the colourful catchphrase that British economist John Maynard Keynes used to portray a mood of confidence and a heartier appetite for risk.
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Oh. Happy days are here again?

[rjbcar27]

1. Hope so.

I hope they're right. I work in an industry that is always one of the first to be hit in tough times and last to recover when things get better. Growth has been flat at best this year but things look as though they are starting to pick up, albeit slowly.

[izzie]

2. Well every one will spend for xmas anf then

I read someplace the DOD business are really on a rool. Ill ask a niece's husband tomorrow as he is in Mang. where they make guns for the service.

[rjbcar27]

3. Well, the defence industry is loving all this war

It's what they live for.

[FlashHarry]

5. Me, too. (Advertising)

Companies hate to spend money on it anyway. First sign of a downturn, ad budgets get slashed.

[rjbcar27]

6. I'm in Motor Racing

so being that it's a "luxury" type of activity and incredibly expensive, it's the first thing that gets cut.

There's an old saying, "How do you make a small fortune out of motorsport? Start with a large one."

[FlashHarry]

4. Corporate profits are skyrocketing... gee, I wonder why.

Since payroll is frequently the largest chunk of any company's operating expenses, if you slash payroll and ship much of it overseas, of course you'll see profits rise. Don't forget, folks, a jobless recovery isn't a recovery at all.

[IADEMO2004]

7. Amen brother

Dump those American workers and their expensive payrolls, insurance, and workers comp. and your company profits skyrocket. The downside is your customers are unemployed. I think there is a wave headed towards us under the surface that no one sees until it hits shallow water and it is too late to stop.

[cthrumatrix]

8. Let the record show all is ok...before the next attack...not all is OK

look at our falling dollar...look at our deficit....look at the state of our manufacturing base and job growth (to keep up with new people coming into the workforce)

I think this is just a smoke screen like 911...all was fine before 911...no it was not.