the visible hand

it is the theory which decides what can be observed – einstein

OECD lowers US growth outlook

Posted by ecoshift on March 20, 2008

FT.com / World – OECD lowers US growth outlook
by Delphine Strauss
Published: March 20 2008 10:31 | Last updated: March 20 2008 15:10

Advanced economies are “not sheltered from financial turmoil” and economic prospects have deteriorated faster than was expected as recently as December, the Organisation for Economic Cooperation and Development said on Thursday.

The Paris-based international organisation for advanced economies said the effects of financial turmoil, the turning of the global housing cycle and squeezed incomes from “soaring” energy and food prices were “unlikely to fade soon”.

It cut its forecast for US growth in the first quarter of 2008 to a mere 0.1 per cent and predicted growth would grind to a halt in the following three months, saying recent data suggested “that the US economy is now essentially moving sideways, if not contracting outright”.

Jørgen Elmeskov, OECD acting chief economist, told a press conference that if investment in US residential property continued to slide at its current rate, by the start of next year “housing construction would be in the deepest slump since our records began” in 1960.

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