PARIS Nov 10: Rich nations in the 25membrr OECD expect average economic growth of around three per cent In the next two years, but expect unemployment and government debt to remain high, a senior Japanese official said yesterday, reports Reuter.

Tsutomo Tanaka, vice-minister of Japan's Economic Planning Agency sold that senior finance officials had agreed at a two-day meeting in Paris that economic growth had strengthened .and taken hold In all member Countries

Chitput In the OECD area is expected to grow al some three per cent over llie next two years, with Inflation re nialnlng low and unemploy ment is set to decline, albeit very slowly he told a news conference

Unemployment tn Europe, where it la particularly bad

would rejnain at or above 10 per cent for the rest of the decade unless reforms were made to the labour market

Atal even with measures to reduce budget deficits, government debt as a proportion of gross domestic product was expected to rise in most member countries of the Organisation for Economic Cooperation and Development over the next two years

Tanaka said the officials, meeting under the umbrella of the OECD's economic policy committee of which he is Deputy Chairman, had reaffirmed the need to maintain cautious monetary poUciea and light fiscal policies to reassure financial markets and prevent a re emergence of inRation

Recent rises In long-term inleresl rates and foreign eX change market developments are disquieting, he said