15-09-14 11:35 pm – Source: Reuters
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Economic growth in the eurozone is the time to come in lower than expected and lags behind the rest of the world. Writes that the Organisation for Economic Cooperation and Development (OECD) in a report published today.
The OECD classifies the eurozone it without prejudice as the problem child of the world economy. Especially in the major economies, Germany, France and Italy, the recovery is disappointing. Confidence in the economy is slowing, while the very low inflation points to the lack of demand among consumers and businesses.
The OECD lowered its forecast for economic growth in the eurozone in 2014 to 0.8 percent. In May, an improvement of 1.2 percent was still predicted. The forecast for 2015 was reduced from 1.7 to 1.1 percent.
Low inflation hampers growth
Especially the low inflation worries the think tank. Making it increasingly difficult for the southern euro countries to improve without having to. Through a long period of low growth and high unemployment their competitive
It remains a risk that the low inflation turns into deflation, a period of sustained price declines. That could frustrate, especially since it becomes more difficult to pay off debts.
World Economy recovering slowly
The moderate recovery of the world economy is in the OECD in the coming months what to. The American economy is showing solid growth, while growth in Japan and China will be. Around the long-term average Brazil is expected to slowly recover from the current recession
(Edited by: Editorial).
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