OECD says recovery continues in 2010 but speed varies according to different regions. According to the OECD's publication, “What is the economic outlook for OECD countries? An interim assessment” published on 7 April, the recovery of the world economy continued in 2010, albeit at variable speeds across countries and regions: 1) Financial conditions have improved and lending conditions have eased considerably. Despite their improved capital positions, banks nevertheless remain vulnerable to credit losses and exposed to interest-rate risk; 2) OECD countries have benefited through trade linkages from strong activity growth in major emerging-market economies, including China, India and Brazil; 3) following a sharp narrowing during the recession, global imbalances have widened somewhat as activity has picked up. Large external imbalances remain within the euro area; 4) following a sharp narrowing during the recession, global imbalances have widened somewhat as activity has picked up. Large external imbalances remain within the euro area; and 5) labour market indicators have stabilised. Taking the most recent dataflow into account, the OECD short-term forecasting models suggest that growth is likely to slow down in the first half of 2010. Annualised quarter-on-quarter growth in the seven most industrialised countries in the world (G7) is only expected to stabilise around 1.9% during the first quarter, as opposed to 3.7% in the last quarter of 2009. Out of the four European member countries of the G7, only Germany experienced a fall in its GDP of - 0.4% in the first three months of the year (France: +2.3%; Italy: +1.2%; United Kingdom: +2.0%). Canada has had the strongest recovery with +6.2%. Overall, the recovery has been swifter in the US, Canada and Japan and less pronounced in European countries, underlines the OECD, but the situation is “relatively encouraging”.