The OECD on Tuesday maintained the outlook for deteriorating growth in most major economies, due to high inflation and low consumer confidence.
In a statement, the Organization for Economic Co-operation and Development (OECD) announced that the Leading Composite Indicators, designed to anticipate turning points in economic activity relative to trend over the next six to nine months, “continue to point to deterioration in most major economies.
According to the organization, the Indicators “remain below trend and continue to anticipate a loss of growth momentum in most major OECD economies”dragged down by historically high inflation, low consumer confidence and falling stock market indices.
The main economies affected are Canada, the United Kingdom and the United States, as well as the euro zone as a whole, including France, Germany and Italy, the OECD said.
On the contrary, in Japan, indicators continue to point to stable growth.
Among the major emerging market economies, indicators are also falling in China (industrial sector), although they show signs of stabilizing.
Also in India, assessment continues to point to steady growthwhile in Brazil a slowdown in growth is still anticipated.
The climate of uncertainty related to the war in Ukraine, the new threats of covid-19, the interruptions in supply chains and the impact of high inflation on real household income are causing higher than normal fluctuations in the components of advanced composite indicators, he clarified. OECD.
Consequently, the indicators must be interpreted with care and their magnitude should be considered as an indicator of the intensity of the signal and not as a measure of the growth of economic activity.
Source: Observadora
