The developed world's economic recovery gained momentum in the fourth quarter as the combined gross domestic product of the world's industrialized economies grew at its strongest pace since the first quarter of 2007.

Figures released last Wednesday by the Organization for Economic Cooperation and Development showed economic output in its 30 members during the three months to December was 0.8% higher than in the third quarter, although it was 0.7% lower in annual terms.

The OECD said the combined GDP of the Group of Seven largest developed economies rose 0.9% from the third quarter but was down 0.8% from the fourth quarter of last year.

OECD members account for 61.3% of world GDP. With large developing economies like China also growing in the fourth quarter, the fourth-quarter figures indicate the world economy has emerged from its deepest recession since the Second World War.

In its most recent report on the economic outlook, the OECD said in November that it expects its members' economies to grow 1.9% in 2010, a sharp upward revision from its June forecast for a 0.7% expansion. And it expects even stronger growth in 2011, with GDP to expand by 2.5%.

However, it predicted that even with the return to growth, unemployment rates will continue to rise until the end of next year, and it will take many years to bring unemployment and government debt back to their pre-crisis levels.