The Organization for Economic Cooperation and Development has cut its global growth forecast from 3.7 to 3.1 percent for 2015. Last year the global economy expanded by 3.3 percent. In its latest report the OECD sighted a possible Greek default and lack of investment from large companies as deterring factors for investors. Weak demand is also inhibiting global employment and wage increases according to the report. The growth forecast revision came following the first quarter contraction in the U.S. economy. Slowing growth in China has also affected the decision. Though economic expansion may be flagging, OECD Chief Economist Catherine Mann also sighted positive global trends in the report, including monetary accommodation, low oil prices and less fiscal drag. The OECD is currently predicting that the U.S. economy will expand by around 2 percent this year, down from 2.4 percent last year.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
