The OECD's chief economist has revised downwards the organisation's forecast for European Union GDP growth in 2001 and 2002, but held steady its outlook for the United States and Japan.
At a presentation in Rome, Chief Economist Ignazio Visco said the OECD expected euro zone gross domestic product to grow 2.5 percent in 2001, down from a forecast of 2.6 percent made in the organisation's May outlook.
For 2002, Visco said he expected growth to be a little higher than 2.5 percent -- still a downward revision from the 2.7 percent forecast the OECD made two months ago.
"Downside risks are particularly evident in the European economy, where growth is lower than it appeared to be only a few months ago, in particular in Germany," Mr Visco said.
"But for Japan and the United States, Visco kept his forecasts in place."
The United States, which grew five percent last year, would probably grow by 1.7 percent in 2001, he said, reiterating an outlook given in May.
It's very unlikely it will grow by more than 2.0 percent, he said adding that the average forecast for growth in 2002 is around 3.0 percent .
Meanwhile, the Japanese economy is expected to grow 1.0 percent in 2001 as predicted in May. Visco said growth would likely hold steady at 1.0 percent in 2002, a slight downward revision from May when the forecast was for 1.1 percent.