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OECD says recovery slowing,
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PARIS: Global recovery looks to be slowing more than expected as growth weakens in rich economies, and stimulus should be extended or stepped up if the slowdown endures, the OECD said on Thursday.
The Organization for Economic Co-operation and Development forecast growth across the G7 group of major economies to average an annualized 1.4 per cent in the third quarter and 1.0 per cent in the fourth, down from 3.2 and 2.5 per cent in the first and second quarters respectively.
"We're seeing a slowdown in the recovery which is more or less generalized," OECD chief economist Pier Carlo Padoan told Reuters Insider TV, although he saw no evidence of a relapse into recession in any major economy at the moment.
"We're not seeing a double-dip now," he said.
The OECD forecast annualized US growth rates of 2.0 and 1.2 per cent in the third and fourth quarters, after 1.6 per cent in the second quarter and 3.7 per cent in the first.
"Recent high-frequency indicators point to a slowdown in the pace of recovery of the world economy that is somewhat more pronounced than previously anticipated," it said.
"It is not yet clear whether the loss of momentum in the recovery is temporary ... or whether it signals greater underlying weaknesses in private spending at a time when public support is being removed," the Paris-based organization said.
For Germany, France and Italy combined, the OECD forecast expansion to plunge to an annualized 0.4 and 0.6 per cent respectively in the third and fourth quarters of the year, from 5.1 per cent in the second quarter.-Reuters
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