OECD Cuts World Growth Outlook, Predicts 'Softspot' in 2011
The OECD said the world economy will grow by 4.2% in 2011, compared with a previous forecast of 4.5%, Bloomberg News reported. Growth will rise to 4.6% in 2012.
The Paris-based organization cited falling house prices in the U.S. and U.K., high levels of sovereign debt and growing trade imbalances as potential threats to growth.
The U.S. economy will grow by 2.7% this year, compared with a previous forecast of 3.2%. The slowdown will continue in 2011, with GDP rising by 2.2%, before hitting 3.1% in 2012.
The 16-member eurozone economy will grow 1.7% this year and in 2011, before reaching 2% in 2012.