Global economy making progress but pace of recovery varies, according to OECD. - The global economy is moving forward but the divergences between countries and regions reflect the uneven progress made towards recovery and the exit from the economic crisis, according to the OECD's latest Economic Outlook published on 29 May. The unemployment rate - historically high - remains the greatest challenge that governments must tackle. “The global economy is strengthening gradually, but the upturn remains weak and uneven. Supportive monetary policies, improving financial market conditions and a gradual restoration of confidence are at the root of the recovery. Also, the fiscal adjustment of the last few years is beginning to pay off”, said OECD Secretary General Angel Gurria. Nevertheless, more daring measures to resolve the financial and banking crisis will be needed in Europe in order to permit a quicker, stronger and more lasting recovery. For this reason, the implementation of a robust banking union must be accelerated. In volume, world GDP is expected to increase by 3.1% this year and by 4% in 2014. In the OECD countries, GDP is projected to register growth of 1.2% this year and of 2.3% in 2014, while the pace of economic expansion in the non-member countries will settle at 5.5% this year and 6.2% in 2014. In the United States, activity is expected to progress by 1.9% this year and by 2.8% in 2014. Within the eurozone, a decline in GDP of 0.6% is expected this year, followed by a recovery of 1.1% in 2014. In Japan, GDP is expected to record growth of 1.6% in 2013 and 1.4% in 2014. By comparison, in the BRIC countries, the OECD projects growth of 2.9% in 2013 and 3.5% in 2014 in Brazil; of 2.3% and 3.6% in the Russian Federation; of 5.3% and 6.4% in India; of 7.8% and 8.4% in China; and of 2.8% and 4.3% in South Africa. The OECD reminds governments of the urgency of taking measures to reduce the alarming unemployment rates in many countries. Jobs are being created in some OECD regions but more needs to be done. Labour markets are set to firm gradually in the United States and Japan over the next two years, but unemployment will doubtless continue to rise in the eurozone, stabilising above 12% in 2014. The situation is particularly worrying in Spain and Greece where unemployment rates are approaching 30%. Solutions need to be found to fight youth unemployment as a priority so as to ensure that cyclical unemployment does not become structural, according to the report. (IL/transl.fl)