OECD cuts global growth forecast to 3.1%

FXStreet (Mumbai) – The Paris-based think tank Organization of Economic Cooperation and Development (OECD) cut its global growth forecast, citing lagging investment as the main reason, followed by the threat of Greek default hurting confidence.

As per the latest OECD forecast, the world economy will expand 3.1% this year, down from the 3.7% predicted last October. Last year, the world economy grew 3.3%.

The downward revision of the global growth forecast was mainly due to first-quarter contraction in the US. Softer expansion in China was also cited as one of the major reasons behind revising global growth forecast lower.

US GDP forecast revised lower

The OECD sees the US economy expanding 2% this year, down from 2.4% in 2014. As recently as March, it predicted US growth of 3.1% in 2015. China will grow 6.8% this year, down from 7.4 percent.

The Paris-based think tank Organization of Economic Cooperation and Development (OECD) cut its global growth forecast, citing lagging investment as the main reason, followed by the threat of Greek default hurting confidence.

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