Market economy group downgrades forecast

A SLOW recovery among nations using the euro is holding back the global economy, the Organisation for Economic Co-operation and Development has said.

The market economy group downgraded its growth forecast for most big economies.

Conflicts in Ukraine and the Middle East and the referendum on an independent Scotland are areas of risk and uncertainty, it said.

Its 2014 estimate is a 0.8 per cent increase in the eurozone economy for 2014, compared with a forecast of 1.2 per cent made in May.

The UK’s forecast was cut by 0.1 percentage points to 3.1 per cent.

US economic expansion for 2014 was cut to 2.1 per cent from 2.6 per cent. Japan’s forecast was cut to 0.9 per cent from 1.2 per cent.

Among countries which are not OECD members, China’s forecast was unchanged at 7.4 per cent.

The OECD said China “has so far managed to achieve an orderly growth slowdown to more sustainable rates”.