Jobless rate headed toward six per cent | National Breaking News | News.com.au
THE unemployment rate could reach six per cent by 2010 as Australia feels the heat from a lengthy recession in the world's leading economies, the OECD says.
The Organisation for Economic Cooperation and Development (OECD) also believes house prices will fall, while businesses are expected to scale back "ambitious" capital investment projects as economic growth sinks below 2.0 per cent in 2009.
And it also warned in its latest Economic Outlook, released today, that an even more pessimistic scenario could not be ruled out.
"An external environment that is less favourable than expected, combined with a further decline in the terms of trade, would pose significant risks," it said.
This would be the case if the global financial crisis continues longer than the OECD anticipates and brings about a greater weakening in the Chinese economy.
The Paris-based institution is forecasting four quarters of negative growth from the September quarter 2008 for the combined 30 OECD countries, led down by the US and the Euro area, and to a lesser extent Japan
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