5 June 2008

OECD cuts growth forecasts

The following article is excerpted from the 4 June 2008 edition of “The Journal of Commerce”.

The Organization for Economic Cooperation and Development is cutting its forecast for economic growth in the United States and the 15-nation euro region for this year and next year….

The report forecasts that the U.S. economy will grow just 1.2 percent this year and 1.1 percent in 2009. Economic growth in the euro area and Japan will slow to 1.7 percent this year. 

The report released Wednesday says financial market turmoil, sharply higher oil and commodity prices and declining housing prices are making it difficult for policymakers to create effective policies.