OECD Cuts Global Growth Forecast to 3.4 Percent

The global economy will grow by less than expected this year as growth in developing economies slows, The Organisation for Economic Co-operation and Development predicts.

It expects 3.4% world growth this year, down from its 3.6% November forecast. In 2015, however, it still expects growth of 3.9%.

It cut forecasts for China and the US.

“We are still not out of the woods yet,” said OECD Secretary General Angel Gurria.

In the UK, the OECD predicted growth of 3.2% for this year, up from its forecast of 2.4% just six months ago. It also upgraded its forecast for 2015 to 2.7% from 2.5%.

The upgrade for the UK was the highest of the G7 countries.

The OECD credited the UK’s “very accommodative monetary policy” and stronger jobs growth for the improved forecast.

“Economic activity is expected to continue to be sustained by household spending and further boosted by a pick-up in investment,” it added.

via BBC

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