New OECD report vindicates Labour’s action on economy

By Alex Smith / @alexsmith1982

A new OECD report, out today, predicts that the UK economy will grow at the second fastest rate of all the G7 major economies for the second quarter of this year (April-June), by 3.1%, but only if policy support is not removed too soon.

As he presented the report, OECD Chief Economist Pier Carlo Padoan said:

“Although we are seeing so me encouraging signs of stronger activity, the fragility of the recovery, a frail labour market and possible headwinds coming from financial markets underscore the need for caution in the removal of policy support.”

Alastair Darling said in a statement:

“The OECD report today is a vindication of the approach that the Labour government is taking. We are coming through this deep global recession because of the actions we took to support the economy. Along with the governments of every major economy, we rejected the Tory call to do nothing to help during the recession.

“The OECD says that we have set the country on the course for faster growth in the coming months – but only if we don’t cut support too soon. They advise governments not to take the recovery for granted and pay attention to ‘the need for caution in the removal of policy support’. The Tories would do well to heed yet another independent warning about how reckless their approach is.”

And Darling added:

“In short: don’t cut support too soon or you’ll wreck the recovery.”