OECD forecasts weak outlook to global economy (3)

China is expected to grow by 8.5 percent in 2013 and 8.9 percent in 2014. GDP growth is also expected to gather steam in the coming years in Brazil, India, Indonesia, Russia and South Africa.

In the challenging economic context, the OECD said the labor market still suffered from feeble economy and predicted a growing trend of unemployment rate by 2013.

"Governments must act decisively, using all the tools at their disposal to turn confidence around and boost growth and jobs in the United States, Europe and elsewhere," Gurria stressed.

"A positive policy response, avoiding the downside scenario and securing more sustainable growth, is possible. It should be based on the full use of available policy tools: monetary, fiscal, and structural," the organization said.

If decisive policy actions are taken to improve business and consumer confidence, and to boost growth and jobs worldwide, a positive scenario could be expected, the organization said.

The rapid and broad implementation of structural reforms, not least in labor and product markets, is key to this scenario, according to the OECD.

"Looking beyond the forecast presented in this Economic Outlook, the deeper policy challenge facing governments is to guide the global economy onto a new, stronger long-term path," said Padoan.

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