Military

DATE=04/28/03

TYPE=CORRESPONDENT REPORT

TITLE=OECD MEETING (L-O)

NUMBER=2-302646

BYLINE= LISA BRYANT

DATELINE=PARIS

CONTENT=

INTRO: With a largely disappointing short-term economic forecast to discuss, finance and trade ministers from the world's richest countries are to meet Tuesday in Paris. Lisa Bryant has more from the French capital on the annual meeting of the Organization for Economic Cooperation and Development.

TEXT: The two-day ministerial meeting follows a mediocre global report card from the O-E-C-D, which last week predicted economies of many member countries will continue to struggle this year, before picking up steam. Overall, the organization downgraded its economic-growth forecast for industrialized nations to one-point-nine-percent in 2003, from its previous two-point-two-percent assessment.

Ministers from the 30 industrialized countries that belong to the Paris organization will gather Tuesday and Wednesday to talk about the factors limiting growth, along with other economic issues.

The organization believes several factors are dragging down short-term economic growth, including fears of higher oil prices and terrorist attacks, along with the possible impact of a new form of pneumonia, known as Severe Acute Respiratory Syndrome.

The O-E-C-D based its forecast on a fairly rapid victory of coalition forces in Iraq. But the group said resolving the Iraqi crisis was not enough to jump-start many faltering world economies.

For example, the group predicts the 12-nation euro-currency zone will grow only one-percent this year, and two-point-four-percent in 2004. The organization faulted some members of the European currency zone, such as France, for high budget deficits, and for slowness in implementing needed economic reforms. The French government has faced mounting domestic criticism in recent weeks, for plans to overhaul its pension system.

But other countries face a brighter economic assessment. The O-E-C-D predicted a relatively robust five-percent growth for Russia this year, for example. And the organization says the United States is expected to grow only two-point-five-percent this year, but will then speed up to four-percent for 2004. (SIGNED)

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