OECD Cut U.S. Growth to 2.4% in 2007; Euro Zone Forecasts Raised
The
Organization for Economic Cooperation and Development (OECD)
trimmed its 2007 global growth forecast for all 30 of its mainly
industrialized member countries to 2.5% -- the lowest rate since 2003 --
from its previous prediction of 2.9% in its latest Economic
Outlook report.
The OECD cut its U.S. growth forecasts to 3.3% in 2006 and 2.4% next year, from the 3.6% and 3.1% growth predicted six months earlier, driven down by the declining U.S. housing market.
The report says the slowdown is "well contained" in the United States and Japan -- where growth is seen falling to 2% in 2007 from 2.8% this year.
Growth has "finally taken off" in the 12-nation euro zone, the OECD said, predicting 2.6% growth this year and 2.2% in 2007 -- compared with the 2.2% and 2.1% previously forecast.
The OECD also raised its 2006 growth forecast for China to 10.6% from 9.7%, predicting a 10.3% expansion next year.
|
U.S. Growth in
Macroeconomic Indicators |
2006 | 2007 | 2008 |
| Gross domestic product | 3.3 | 2.4 | 2.7 |
| Private final consumption expenditure | 3.2 | 3.0 | 2.8 |
| Government final consumption expenditure | 1.6 | 2.5 | 2.1 |
| Gross total fixed capital formation | 3.4 | -0.7 | 2.9 |
| Final domestic expenditure | 3.0 | 2.2 | 2.7 |
| Total domestic expenditure | 3.2 | 2.2 | 2.7 |
| Exports of goods&services | 8.5 | 6.3 | 6.9 |
| Imports of goods&services | 6.3 | 4.1 | 5.4 |
| GDP deflator (market prices) | 2.9 | 2.6 | 2.6 |
| Private final consumption expenditure | 2.8 | 2.2 | 2.2 |
| Compensation rate of the private sector | 6.8 | 5.0 | 5.0 |
| Unemployment rate | 4.6 | 4.8 | 5.1 |
| Total employment | 1.8 | 1.0 | 0.7 |
| Government net lending (as a percentage of GDP) | -2.3 | -2.8 | -3.0 |
| Current account (as a percentage of GDP) | -6.6 | -6.5 | -6.6 |
| Short-term interest rate | 5.2 | 5.3 | 5.0 |
| Consumer price index | 3.3 | 2.3 | 2.3 |
