OECD raises global growth forecast

Reuters reports that the OECD has raised it global growth forecast.

The global economy is recovering faster than expected from recession with Asia leading the way, but it is at risk from huge debts in developed countries and possible overheating in countries such as China, the OECD said on Wednesday.

In a twice-yearly report, the Paris-based Organization for Economic Co-operation and Development raised its forecast for global growth to 4.6 percent in 2010 and 4.5 percent in 2011. Last November it predicted growth of 3.4 percent this year and 3.7 percent in 2011, after a 0.9 percent contraction in 2009.

Meanwhile, economic reports from the US continue to be positive. From Bloomberg on Wednesday:

Purchases of new homes jumped in April to a two-year high and orders for durable goods climbed the most in three months, signaling the U.S. economy strengthened before the crisis of confidence in the European Union.

New-home sales increased 15 percent to an annual pace of 504,000 last month, the highest level since May 2008, while bookings for goods meant to last at least three years rose 2.9 percent, the Commerce Department said today in Washington.

However, markets remain focused on developments surrounding eurozone sovereign debt. Reuters reports:

U.S. stocks and the euro ended lower on Wednesday, with the Dow closing below 10,000 for the first time since early February, after a report said China was reviewing its euro-zone debt holdings -- feeding investors' concerns that the European debt crisis could reverse the global economic recovery.

Gold prices rose about 1 percent, building its best three-day gain since January as dealers hedged against Europe's sovereign debt problems and took advantage of the desire for asset protection.