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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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza