EUROPE & CIS: Growth slows in major economies: OECD

Most major economies are showing signs of “a mild loss of growth momentum” in the next few months, the Organisation for Economic Cooperation and Development said recently. The organisation of developed economies said its composite leading indicator for its 34 member countries stalled in April unchanged from March’s level of 103. A 100 reading is […]


Most major economies are showing signs of “a mild loss of growth momentum” in the next few months, the Organisation for Economic Cooperation and Development said recently. The organisation of developed economies said its composite leading indicator for its 34 member countries stalled in April unchanged from March’s level of 103. A 100 reading is the breakeven point between expansion and contraction. The US was slightly above that level, with a 103.4 reading that inched up from 103.3 in March. The indicator for the euro area fell to 102.8 from 103.1. Brazil, China, India and Russia, which are not OECD members, also registered lower readings. The indicator suggested a “possible moderation in economic activity” in China, slowdowns in Brazil and India and showed the “the first sign of a loss of momentum in Russia,” the OECD said. In the euro zone, the indicator pointed to steady expansion in Germany but slowdowns in France and Italy. Outside the euro zone, the indicator suggested stable but slow expansion in Britain. No reading was given for Japan because of the economic disruption resulting from March’s earthquake, tsunami and nuclear crisis. In its twice-yearly Economic Outlook last month, the OECD forecast last month that world growth would ease to 4.2 per cent this year from 4.9 per cent in 2010 before accelerating to 4.6 per cent in 2012. Since then, weak economic data from the US and Europe have led many analysts to lower growth estimates.