OECD chops growth forecasts as eurozone crimps recovery

Cranes pictured on construction site in the financial district of central London on October 25, 2013The sickly eurozone recovery is a drag on the outlook for the global economy, the OECD warned on Monday as it cut growth forecasts for most major advanced economies. “Continued slow growth in the euro area is the most worrying feature of the projections,” the OECD said, as it updated its forecasts for major economies. While it said the moderate US economic expansion remains broadly on track, the OECD cut the 2014 forecast by a fifth to 2.1 percent from 2.6 percent. Japan’s forecast was cut by a quarter, to 0.9 percent from 1.2 percent, although the OECD said it expected the underlying recovery in the economy to reassert itself following the dent to growth caused by an April sales tax increase.

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