OECD: Worry Over U.S. Hurts Economies More Than Expected

Nervousness about United States monetary policy and fears of a budget and borrowing breakdown in Washington are having a bigger drag on the global economy than expected, the Organization for Economic Cooperation and Development warned on Tuesday. The report was a more pessimistic view of global growth than six months ago.

The organization, which has 34 members worldwide, including the United States and most of the 17 members of the European Union that use the euro, said American policy was having far-reaching harmful effects on developing countries like Indonesia and Brazil. Economic problems in those countries will ricochet to the United States and Europe, the O.E.C.D. said, in the form of weaker demand for products from the developed world.

“We used to think of emerging countries as an engine of growth,” Pier Carlo Padoan, the organization’s chief economist, said at a news conference in Paris. “This view has to be adjusted.”

NY Times

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