PARIS: Growth in advanced economies will pick up speed this year and next, but mostly at a slower pace than forecast as new risks loom, especially from emerging economies, the OECD said on Tuesday.
Japan and the eurozone will both do slightly better than expected this year and next as austerity policies retreat, monetary stimulus is maintained and financial conditions improve, the OECD said.
But the US economy will grow less quickly than forecast, with the OECD pointing to political dysfunction in Washington and the eventual tapering of monetary stimulus as factors that could hamper recovery.
Global “outcomes this year and near-term prospects appear a little weaker than had been expected in May, at the time of the previous Economic Outlook,” the OECD said.
The organisation, a 34-nation policy forum for developed democracies, revised global growth of gross domestic product down by nearly half a percentage point both this year, to 2.7 percent, and next, to 3.6 percent.