New research from the Organisation for Economic Co-operation and Development (OECD) has shown that global recovery is becoming self-sustained, which could ensure job creation.

Growth in the G7 countries, discounting Japan, is currently stronger than previously predicted by the group, thanks to positive trade results and increased private sector investment.

The latest Interim Economic Assessment by the organization shows that annual economic growth could reach three per cent by the middle of 2011 and fewer countries are needing to look for help to keep their economies afloat.

Pier Carlo Padoan, chief economist at the OECD, said: "Growth perspectives are higher all across the OECD area, and the recovery is becoming self-sustained, which means there will be less need for fiscal or monetary policy support."

The OECD recently reported that unemployment across the G7 countries dropped by 0.1 per cent in January, compared to the previous month, with only 8.4 per cent of the population without a job.

Posted by Lee Thrace