New proposals have been put forward by the Organisation for Economic Co-operation and Development (OECD) to restore growth in the global economy.

The Paris-based body has pointed to the need for confidence to be rebuilt in the wake of the worldwide downturn and problems with growing unemployment to be addressed.

Secretary-general of the OECD Angel Gurria said that "bold action" is required from the leaders of the G20 nations at their forthcoming summit in Cannes to ensure this takes place.

He welcomed the European Union (EU) plan agreed on October 26th to tackle the growing crisis in the eurozone, adding that action must be swift and decisive as gross domestic product growth within the G20 is expected to remain slow over the next two years.

In his briefing note, Mr Gurria pointed to anticipated weak levels of expansion in the US economy, picking up from 2012, stating: "Unemployment is set to remain high in many advanced countries."

A recent OECD report suggested that G20 labor and employment ministers have identified well-targeted tax reforms as one way of enhancing employment as the world recovers from the effects of the economic crisis by encouraging people to look for jobs and recruit workers.

Posted by Lee Thrace