IDEX Online Research: Global Economic Growth Continues To Slow

(IDEX Online) – Composite Leading Economic Indicators (CLI) in January continue to point to a slowdown in global economic activity in most major geopolitical areas, according to the Organization for Economic Co-operation and Development (OECD), the Paris-based think tank.

While there has been little overall change in the Composite Leading Indicators over the past two months, the OECD noted that the CLI’s for Japan, the United States and Russia have begun to show stronger signs of a positive change in momentum.

In contrast, the CLI for China has deteriorated since last month, and is pointing to a slowdown in long-term economic activity. Further, for other major economies, including the Euro area, the CLI’s continue pointing toward economic slowdowns.

The following table summarizes the economic growth cycle outlook for some key diamond consuming nations around the world as well as other nations with connections to the global jewelry industry.

Source: OECD

OECD Unemployment Rate Stable in November 2011

While the latest OECD area economic data shows that the unemployment rate remained stable at 8.2 percent in November – unchanged since August, and hovering around this level since January 2011 – the apparent stability at the aggregate level masks different national situations.

The Euro area’s unemployment rate remained at 10.3 percent in November, the highest rate since the start of the global financial crisis. This reflected continuing increases in the unemployment rates for Portugal (13.2 percent), Spain (22.9 percent), Ireland (14.6 percent) and more recently the Netherlands (4.9 percent). However, these rising unemployment rates were offset by sustained declines in Germany (5.5 percent), and more recently Belgium (7.2 percent). Germany’s unemployment rate has regained its 1991 reunification level (5.5 percent in November), down from a peak of 11.5 percent in April 2009.

Preliminary figures for December show a divergent pattern in North America. While the U.S. posted a decline in unemployment for the fourth consecutive month – falling to 8.5 percent – Canada posted its third consecutive monthly uptick in unemployment to 7.5 percent.

The table below summarizes unemployment rates for major geopolitical areas around the globe.

Source: OECD