World economies heading for slowdown
Wednesday, 14 May 2008 16:18
World economy headed for slowdown
All the major world economies – apart from Russia - are heading for a slowdown, the OECD has found.
March economic data show a weakening outlook for Organisation for Economic Co-operation and Development (OECD) members, the group said in a report.
Using composite leading indicators (CLIs) as a measurement, the group found that the CLI for the OECD area as a whole – which includes 20 member countries – was down by 0.5 points in March and 3.2 points down from last year, to 98.1.
The OECD uses an index for its economic forecasts. A decrease in points under 100 is a slowdown, while a decline that remains above 100 points is a downturn.
The US was down 0.9 points in March and 3.6 points lower than last year to 97.9, which the OECD said points to a slowdown, while the UK dropped 0.7 points in March to 98.3 and stood 3.3 points lower that a year ago, which the group calls a 'moderate slowdown'.
Japan, Canada, and France are also set for slowdowns, while Germany is also set for a moderate slowdown, the report added.
China – not an OECD member - was up slightly in March, but 1.6 points lower than last year, despite the country's rapid growth, and is headed for a moderate downturn.
India, another economic powerhouse, was also down from last year and stood 1.6 points lower than March 2007, and is also forecast to see a moderate downturn.
Russia, however, has registered an increase of 0.1 point in March and was 3.2 points higher than a year ago and is undergoing a slow expansion, the report said.