For the first time since June 2007, the projections in this Economic Outlook have been revised up for the OECD area as a whole compared with the previous issue. The contraction of output is now moderating from the exceptional drop in the six months to March. The slowdown in the fall of activity is driven by inventory adjustment contributing positively to growth, non-OECD countries recovering, some return of business confidence and policy stimulus providing greater support. However, financial conditions remain tight in spite of some recent easing and the bottom of the recession is likely to be reached only in the second half of the current year, after which a weak recovery is projected (Table 1.1). The OECD economy will at the end of 2010 therefore be faced with an exceptional degree of slack...