Member states of the Organisation of Economic Cooperation and Development (OECD) will witness a slowdown in economic growth amid the U.S. subprime crisis and rising prices of primary products, the OECD said Wednesday.
Growth among the 30-member organization will slow to 1.8 percent this year from 2.7 percent in 2007, while U.S. GDP would expand by 1.2 percent this year, down from 2.2 percent in 2007, the OECD predicted in its twice-yearly survey.
Economic growth in the eurozone is set to fall to 1.7 percent this year from 2.6 percent in 2007, and Japan's economy is expected to grow by 1.7 percent, down from 2.1 percent last year, the Paris-based think tank said.
Meanwhile, the OECD said the U.S. economy was expected to remain sluggish in the second quarter due to higher inflation rates and surging oil prices.
The eurozone has so far been able to mount some resistance to a global slowdown with 3-percent growth in the first quarter, but a lower consumption level, high inflation rates and a strong euro has hit exports and built pressure on economic growth.
Despite a rebound in housing investment and robust export growth in Japan, business investment is weakening while rising food and fuel prices will likely curb consumer spending, the survey said.
Source: Xinhua
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