OECD CHIEF SEES SIGNS OF RECOVERY

OECD CHIEF SEES SIGNS OF RECOVERY

Economic conditions still point to a global recovery despite deepening pessimism, Jean-Claude Paye, secretary-general of the Organization for Economic Cooperation and Development said in an interview published here last week.

Mr. Paye noted that the OECD had cut its 1992 growth forecast for the 24 main industrial nations to 2.2 percent at the end of December from 2.9 percent forecast six months earlier. He also noted that 1991 growth came in below expectations."But these are not fundamental changes," he told the Paris daily Le Figaro. "We still think the conditions are in place for a recovery."

"Doubtless, the ambient pessimism encourages stagnation and explains why economies are reacting less well than expected . . . but this psychological dimension is difficult to measure and still more difficult to predict," Mr. Paye said.

The official blamed the Persian Gulf war and East European developments for raising global concern, saying the continuing debt overhang in many countries was delaying spending and investment decisions.