Paris-based research body Organization for Economic Cooperation and Development sees deterioration in developed world
GN Bureau | September 9, 2015
India is expected to see ‘firming growth’ while growth is set to slow across a number of the world’s largest economies, including China, the US and the UK, according to leading indicators released yesterday by the Organization for Economic Cooperation and Development.
The Paris-based research body said its gauges of future economic activity—which are based on information available for July—also point to slowdowns in Canada, Russia and Brazil. The readings are based on Composite Leading Indicators (CLIs) that are designed to anticipate turning points in economic activity relative to trend.
"In India, the CLI points to firming growth... on the other hand, the outlook continues to deteriorate for China, with the CLI pointing more strongly to a loss of growth momentum," OECD said in a statement.
India's CLI stood at 99.8 in July, slightly higher than 99.7 seen in June. OECD, which is also a grouping of mostly developed nations, noted that signs of slowing growth momentum have re-emerged in Russia while Brazil is expected to witness weak growth momentum. India's economic growth slowed to 7 percent in the three months ended June compared to 7.5 percent expansion recorded in the January-March quarter.
International Monetary Fund (IMF) Managing Director Christine Lagarde recently said that India is among the few bright spots in the global economy.
The continuing slowdown suggested by the leading indicators would spell another disappointing year for the global economy, which has struggled to recover from the effects of the 2008 financial crisis.
The OECD said on Tuesday that its leading indicators suggest the eurozone economy will avoid a slowdown, and signal a pickup in France, which has lagged behind other members of the currency area.
The most pressing concern for G-20 policy makers is the outlook for the Chinese economy, amid signs that an expected slowdown may turn out to be sharper than expected. The OECD’s leading indicator for the world’s second-largest economy fell again in July, to 97.6 from 97.9. A level below 100 signals a slowdown, while a level above signals an acceleration. Those worries have already led to turmoil in global financial markets.
A sign of further slowdown in global economic growth poses a challenge for central bankers, who have seen inflation rates fall far short of their targets in recent years, with a slide into deflation threatening as oil prices once again tumble.
The European Central Bank last week signaled it is prepared to expand its already massive bond-buying program, underscoring an increasing divergence in the monetary policies of the world’s largest central banks.
But the OECD’s leading indicators suggest the eurozone economy will avoid a slowdown and signal a pickup in France, which has lagged behind other members of the currency area. In a statement Tuesday, the European Union’s statistics agency raised its figures for eurozone economic growth in both the first and second quarters.
The OECD’s leading indicators are designed to provide early signals of turning points between the expansion and slowdown of economic activity, and are based on a wide variety of data series that have a history of anticipating swings in future economic activity.
The OECD’s composite leading indicator for its 34 members fell to 100 in July from 100.1 in June.
Fire on the Ganges: Life among the Dead in Banaras By Radhika Iyengar 4th Estate / HarperCollins, 348 pages, 599
Calling for reforms in the Engineering Department of BMC, Mumbai Vikas Samiti, a not-for-profit organisation has said that less than optimum performance of Engineering Function has added to the woes of citizens and deterioration in the quality of life in the metro. In its recently released r
Hailing the Maharashtra government for introducing a bill to amend the Insecticide Act, 1968, Pesticide Action Network (PAN) India has called the amendments ‘very focussed’ and urged the state to expand their scope to address other challenges. The bill, introduced in the a
`Garba of Gujarat` has been inscribed in the Representative List of Intangible Cultural Heritage (ICH) of Humanity by UNESCO, under the provisions of the 2003 Convention for the Safeguarding of Intangible Cultural Heritage during the 18th meeting of the Intergovernmental Committee for the Safeguarding of t
Since its inception, Citizen Financial Cyber Fraud Reporting and Management System has witnessed more than 12.77 lakh complaints registered (till November 15, 2023), and has saved more than Rs. 930 crore in more than 3.80 lakh complaints. This was stated by minister of state for home affair
Impacts and implications of Climate Change Vulnerability in the Himalayan Region and ways of creating ‘Climate Resilient Development in Indian Himalayan Region by making mountain communities green and resilient were discussed the side event hosted at the India pavilion at the UN Climate Conference CO