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International Economic Group Reduces Expectations for Growth

  • VOA News

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, Feb. 16, 2016.

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, Feb. 16, 2016.

The Paris-based Organization for Economic Cooperation and Development has downgraded its forecast for world economic growth.

The OECD noted that uncertainties like the migrant crisis and external security threats will drag down prospects.

It called on wealthier nations to ease up on austerity measures and agree to spend more on infrastructure projects to aid recovery.

The OECD released its forecast Thursday, saying it expects growth in the eurozone to be 1.4 percent for 2016 and 1.7 percent the following year.

Organisation for Economic Co-operation and Development, February 2016 Global Economic Outlook

Organisation for Economic Co-operation and Development, February 2016 Global Economic Outlook

More reforms needed

It says sluggish recovery from the global economic downturn and slow progress on economic reforms are hindering progress.

The report also said reforms in the euro area have been too slow in creating more favorable conditions for European integration into the single market.

Growth forecasts for both Germany — Europe's strongest economy — and the United States were both reduced by a half percentage point, to 1.3 percent and 1.7 percent respectively.​

The OECD also reduced its global growth forecast, shaving its previously stated expectation of 3.3 percent growth to 3 percent for 2016. It said global economic performance was worse than the long-term average and weaker than would be expected during a recovery.

The forecast for global growth in 2017 was also reduced and now stands at 3.3 percent.

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