International banking may improve as global economies begin to recover

There are indications of recovery in the global economy which in turn may have a positive impact on international banking, according to a recent survey.

The Economic Outlook report from the Organisation for Economic Cooperation and Development (OECD) indicates that China is leading the way. The European Union (EU) economy is expected to expand over the next two years. In addition, there are signs that the US property market is slowly starting to stabilise.

Australia has emerged as one of the countries least affected by the recession, and has been named as a sound prospect for future international investment and overseas jobs. The OECD report states that growth in the country is likely to pick up and the government had taken sound and effective measures to save the economy.

Angel Gurria, the OECD secretary general, said: “The good news is that the recovery – albeit a weak one – is underway.”

On a more negative note the report indicates that unemployment rates in the US and EU could continue to grow in the coming months. This perception is in agreement with figures released from the EU about the continuing weakness in the labour market. The jobless rate is expected to peak in early 2010 in the US but this development could be delayed until 2011 in the EU.