OECD revised down economic forecasts
FXBAZOOKA.com - The Organization for Economic Cooperation and Development revised down its 2014 economic forecasts for the most developped countries, referring to the increased geopolitical tensions and weak inflation in euro zone.
According to the renewed forecast, euro zone's economy will grow by only 0.8% this year, compared to the May forecast of 1.2%. The economists especially point to a slowdown in Germany, France and Italy. OECD strongly recommends ECB to to implement QE in order to avoid slipping in deflation.
The US and the UK economies tend to move in a right direction, OECD says. Need for the use of unconventional measures is coming to an end. However, forecasts have also been revised down from 2.6% to 2.1% and from 3.2% to 3.1% respectively. Japan's GDP will grow by 0.9% versus previously expected 1.2%, while China's estimate remains unchanged at 7.4%.