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Gloomy outlook on global economy as OECD slashes 2015 growth forecast

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Gloomy outlook on global economy as OECD slashes 2015 growth forecast

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The Organisation for Economic Cooperation and Development (OECD) has slashed its 2015 global growth forecast from 4 percent to 3.1 percent.

It has also reduced its 2016 outlook, cutting it from 4.3 percent to 3.8 percent.

OECD Secretary General Angel Gurria said: “The global recovery continues, but it is still mired by high levels of unemployment, rising inequalities and low wage and low productivity growth.”

“A major explanation for this state of affairs is the lack of vigour of investment,” Gurria also said.

The OECD has cut its forecast for the US economy – which shocked analysts by contracting in the first quarter, raising the spectre of its worst first-half performance in four years.

The eurozone has finally started making a positive contribution to global growth, after years in the doldrums – but fear over the fate of Greece has the OECD deeply concerned.