OECD's Gurria sees no double-dip, risks manageable

Organisation for Economic Cooperation and Development (OECD) Secretary General Angel Gurria attends a meeting with Israel's Foreign Minister Avigdor Lieberman (not pictured) in Jerusalem January 19, 2010.REUTERS/Ronen Zvulun

DAVOS, Switzerland (Reuters) - The world economy is unlikely to get into a double-dip recession, OECD Secretary General Angel Gurria said on Saturday, adding that existing downside risks are manageable.

“There are downside risks yes but we’re having a generalized recovery and that’s a fact,” Gurria told Reuters Insider television. “The economies are coming out of recession, sluggishly, and it’s modest growth on the positive side for a foreseeable future. I don’t see a double dip... The recovery is on track.”

In its twice-yearly economic outlook, the Organization for Economic Cooperation and Development said in November the world’s key central banks will not need to start raising interest rates until late 2010 due to low inflation and economic slack.

The Paris-based Organization raised its global growth forecast for 2010 to 3.4 percent from the 2.3 percent it predicted in June, after an estimated contraction of 1.7 percent of 2009.

Reporting by Natsuko Waki and Krista Hughes