OECD cuts global growth forecasts, predicts stronger-than-expected performance for UK in H1 2016

In its latest interim Economic Outlook released on Wednesday, the Organization for Economic Co-operation and Development (OECD) made a further modest downgrade to its world growth forecasts for this year and next. The organization warns weak trade and financial distortions likely to damage global growth prospects.

OECD trimmed global GDP growth forecast for 2016 to 2.9 percent from previous 3.0 percent. 2017 GDP growth forecast was cut to 3.2 percent from previous 3.3 percent. Country wise details were as under:

US 2016 growth forecast cut to 1.4 percent (previous 1.8 percent), 2.1 percent in 2017 (previous 2.2 percent)

Euro Area 2016 growth forecast cut to 1.5 percent (previous 1.6 percent), 1.4 percent in 2017 (previous 1.7 percent)

Japan 2016 growth forecast cut to 0.6 percent (previous 0.7 percent), 2017 raised forecast to 0.7 percent (previous 0.4 percent)

The thinktank has backtracked on its warning for the UK as it revised higher growth forecast for Britain in H1 2016. OECD raised UK 2016 growth forecast to 1.8 percent (previous 1.7 percent). The thinktank said it was still predicting a sharp slowdown in the economy, but that this would not happen until 2017. 2017 growth forecast was cuts to 1.0 percent (previous 2.0 percent).