25-03-2008
US growth forecasts cut by OECD
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The Organisation for Economic Co-operation and Development (OECD) has reduced its growth predictions for the US economy.
Data released by the organisation shows the expectation that, over the first two quarters of 2008, it is considered unlikely that the US economy will grow by anything more than a minimal amount. "[The US economy is] essentially moving sideways, if not contracting outright," said the OECD. "Pressures have tended to spread to new markets and institutions, reaching beyond the origin of the US sub-prime mortgages and derived products and leading to a generalised wariness and re-pricing of risks," added the organisation, in a report by the Economic Times.
Elsewhere in the world, the OECD has forecast more positive growth levels, with the UK predicted to enjoy growth of 0.6 per cent during the first quarter of 2008. Within the eurozone, the organisation has predicted growth levels of 0.5 per cent over the first quarter of the year, slipping to 0.4 per cent during the second quarter. However, returning to the US, the OECD stressed that it was too early to confirm that the country had entered a period of recession.