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OECD calls for urgent action to exit low-growth trap

Staff writer |
Governments must use all the policy tools available to lift the global economy out of the low-growth trap, the Organization for Economic Co-operation and Development (OECD) said.

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OECD retained its global growth forecast of 3 percent for this year and 3.3 percent next year, in its latest Global Economic Outlook report.

"The longer the global economy remains in this low-growth trap, the harder it will be for governments to meet fundamental promises," OECD Chief Economist Catherine Mann said.

"The consequences of policy inaction will be low career prospects for today's youth, who have suffered so much already from the crisis, and lower retirement income for future pensioners."

However, the OECD trimmed the United States growth projection for this year to 1.8 percent from 2 percent. The outlook for next year was retained at 2.2 percent.

In contrast, Eurozone's growth projection for this year was lifted to 1.6 percent from 1.4 percent. Growth forecast for next year was retained at 1.7 percent.

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