The grim forecasts of prolonged US economic weakness gushing forth on a near-daily basis are unfounded, according to the Organisation for Economic Co-operation and Development.

A new report from the OECD paints a more upbeat picture, predicting 2.4% growth this year and 2.7% in 2003, well up from the 0.3% of 2001.

Explaining its optimism, the forecasting group pointed to undiminished consumer spending levels and technology-driven gains in productivity. It added that “the recession that began in March 2001 was among the mildest on record.”

However, should the recovery look like running out of steam, the OECD advises that the Federal Reserve cut interest rates further.

Data sourced from: BBC Online Business News (UK); additional content by WARC staff