Global Growth Forecast Likely Sluggish 03/11 07:22
Global growth is likely to remain sluggish as a slowdown in the developing
world undercuts gains in Europe and the United States, a leading international
economic body warned Tuesday.
PARIS (AP) -- Global growth is likely to remain sluggish as a slowdown in
the developing world undercuts gains in Europe and the United States, a leading
international economic body warned Tuesday.
The Organization for Economic Cooperation and Development said one-off
factors like the harsh winter weather in North America and the U.S. government
shutdown mean "growth for the major advanced economies in the first half of
2014 will be somewhat slower than in the second half of 2013."
The underlying trend for those economies, however, continues to be of
strengthening growth, said the OECD, a think tank for the world's most
developed countries, in an update to forecasts made in November.
Meanwhile, emerging economies, which now account for over half the world
economy, "are experiencing a marked loss of momentum," the OECD said. If that
continues, the OECD warned it "is likely to mean that global growth remains
only moderate in the near term."
In its World Economic Outlook, the organization forecasts global growth of
3.6 percent this year, from an estimated 2.7 percent in 2013. It says the
recovery in the United States "is relatively well established," contrary to
what it sees happening in the EU and Japan, where the OECD called for further
The OECD warned that while activity in the EU seems to be improving, "so far
it is doing so later and at a slower pace than in the other major economies."
It also warned that the dip in growth in the U.S. over the winter could have
longer-lasting repercussion. "If the recent economic weakness were to durably
depress confidence, it could undermine the recovery," the OECD said.