OECD expects to cut global forecasts

The Organisation for Economic Co-operation and Development (OECD) expects to lower its global economic forecast at its next outlook…

The Organisation for Economic Co-operation and Development (OECD) expects to lower its global economic forecast at its next outlook due on November 21st, its chief economist said today.

"The figures will be below those published in the spring," Mr Jean-Philippe Cotis, the new OECD chief economist, told a briefing at its headquarters in Paris. In Europe's case, the revision downwards could be "substantial," he said.

In its last outlook on April 25th, the OECD foresaw euro zone growth of 1.3 per cent in 2002 and 2.9 per cent in 2003. For the United States, it predicted 2002 growth of 2.5 per cent.

But Mr Cotis declined to offer advice on current monetary policy, saying only that current European and US interest rates were "accommodating" on both sides.

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"European growth has been weaker than expected," he said "The recovery is there, but softer than was anticipated".