OECD Says Global Growth Will Continue To Under Perform

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 monetary stimulus.


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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